Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activity of federal award programs of Hospitality Industry Training and Education Fund (the “Plan”), and therefore, does not present the financial position or results of operations of the Plan. The information in this Schedule is presented in accordance with requirements of the Office of Management and Budget (“OMB”) Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Plan, it is not intended to and does not present the net assets available for benefits or changes in net assets available of the Plan.
Expenditures reported on the Schedule are reported on the accounting principles generally accepted in the United States of America basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. The amounts reported in the Schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
Under the terms of the federal grants, additional audits may be requested by the grantor agencies, and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.
Federal award expenditures are reported on the statement of changes in net assets available for benefits as program expenses. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards and differences between accounting principles generally accepted in the United States of America and applicable government regulations regarding eligible program expenditures.
The Plan does not have any federal indirect cost rates.