Notes to SEFA
Montgomery County Food Bank, Inc., (Food Bank) receives federal grants to carry out its programs and services for low-income families in Montgomery County, Texas. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activities of the Food Bank and is presented on the accrual basis of accounting. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Food Bank, it is not intended to and does not present the financial position or changes in net assets, of the Food Bank.
The Food Bank expended federal awards in the form of noncash food commodity assistance. There were no federal awards expended in the form of insurance and there were no federal program loans or loan guarantees outstanding at year-end.
Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule may differ from amounts reflected in the financial reports submitted to grant awarding agencies for the following reasons: • Expenses accrued at the end of the Food Bank’s fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end; and • Differences may exist between grant periods and the Food Bank’s accounting period.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored and reviewed by grantors. Management believes that the Food Bank is in substantial compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts and disclosures in the financial statements.