Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in HFSC’s financial statements in conformity with generally accepted accounting principles. Because the schedule presents only a selected portion of the operations of HFSC, it is not intended to and does not present the net position or changes in net position of HFSC. Indirect cost rate – HFSC uses the 10% de minimus rate for indirect costs.