Notes to SEFA
Title: Equipment
Accounting Policies: NOTE 1:SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying schedules of expenditures of federal and state awards include the grant activity of DRC and are presented on the accrual basis of accounting. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements.
De Minimis Rate Used: Y
Rate Explanation: NOTE 2:INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. DRC does not have an approved indirect cost rate and has yet to determine if it will elect the 10% de minimis reimbursement rate. In the meantime, DRC is using the 10% de minimis reimbursement rate as allowed under Uniform Guidance.
Equipment costing less than $5,000 is recorded as an expenditure of the applicable program when acquired. Property and equipment costing $5,000 or more is capitalized and depreciated using the straight-line method over estimated useful lives ranging from three to five years.
Title: Expenditures
Accounting Policies: NOTE 1:SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying schedules of expenditures of federal and state awards include the grant activity of DRC and are presented on the accrual basis of accounting. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements.
De Minimis Rate Used: Y
Rate Explanation: NOTE 2:INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. DRC does not have an approved indirect cost rate and has yet to determine if it will elect the 10% de minimis reimbursement rate. In the meantime, DRC is using the 10% de minimis reimbursement rate as allowed under Uniform Guidance.
Expenditures identifiable with specific programs are charged directly to the applicable program. Administrative personnel costs are allocated monthly based on the pro-rata share of the direct billable time for each grant/contract. Other shared costs(e.g. supplies, occupancy) are allocated to specific programs based upon the pro-rata share of the total number of programmatic staff working in each location and their full time equivalent for each grant/contract.