Notes to SEFA
Title: CONTINGENCY
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Church World Service, Inc. (CWS) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements, which are prepared in conformity with U.S. generally accepted accounting principles. Amounts reimbursable under U.S. governmental programs are generally recognized in the period in which the expenses are incurred, except for the U.S. Reception and Placement Program, which is principally based on the number of authorized refugees resettled.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
CWSs grant programs are subject to audit and adjustment by the respective federal agencies. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of CWS. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.