Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal expenditures of CARE under programs of the federal government for the year ended June 30, 2025. Because the Schedule presents only a selected portion of the operations of CARE, it is not intended to and does not present the financial position, results of operations, or cash flows of CARE. For purposes of the Schedule, federal awards include all grants entered into directly, and via pass-through, between CARE and agencies and departments of the federal government.
For the purpose of the Schedule of Expenditures of Federal Awards, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative amounts on the Schedule are adjustments to expenditures reported in the prior years. Agricultural and other commodities are recorded as inventory when shipped to a CARE country office or held in storage in the destination country prior to distribution. Revenue and expense (program activity) are recognized when the commodities are distributed, on a first-in, first-out basis. Freight expense is recognized as expense when incurred. Agricultural and other commodities are recorded at an ascribed amount representing the market valuation placed thereon by the Commodity Credit Corporation (as an agency of the United States government). Donated ocean freight is recorded based on the carrier’s bill of lading. For the year ended June 30, 2025 the non-cash expenses provided to sub-recipients have been added to the Payments to Sub-recipients. The non-cash expense includes agricultural commodities and ocean freight.
CARE did not elect to use the 10% de minimis cost rate permitted by the Uniform Guidance.