Notes to SEFA
Sewa International Inc., USA, (“the Organization”) received federal funds to provide a variety of community based services in different states in the United States of America.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activities of the Organization under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“federal Uniform Guidance”). Because the Schedule presents only a selected portion of the Organization’s operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
In accordance with U.S. generally accepted accounting principles, the Organization accounts for all federal award programs on an accrual basis of accounting. Accordingly, expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to the Organization, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal grantor agencies or pass-through entities.
The Organization elected to use the 10% de minimis cost rate where applicable.
The Organization did not generate program income. Accordingly, no program income was used to reduce the amount of federal funds expended in providing the programs.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons: 1. Program matching costs that are reported, where applicable, in the financial reports submitted to grant awarding agencies are not included in the amounts reported on the Schedule. 2. Differences may exist between grant periods and the Organization’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.