Notes to SEFA
This schedule is prepared on the same basis of accounting as the Pacific Mountain Workforce Development Council’s (PacMtn) financial statements. PacMtn uses the accrual basis of accounting.
Federal regulations under 2 CFR Part 200 permit non-federal entities that do not have a negotiated indirect cost rate to elect to use a de minimis indirect cost rate. For federal awards issued prior to October 1, 2024, the allowable de minimis rate is 10 percent of modified total direct costs (MTDC). For federal awards issued on or after October 1, 2024, the allowable de minimis rate increases to up to 15 percent of MTDC. PacMtn has not elected to use the de minimis indirect cost rate for any federal awards.
PacMtn allocates indirect costs to programs each month based on each program’s proportion of total direct labor costs incurred during that month. For the year ended June 30, 2025, PacMtn allocated $598,481 in indirect program costs and $260,910 in indirect administrative costs based on $2,720,676 in total direct wages and benefits. PacMtn has a provisional indirect cost rate of 35.74 percent, approved by the U.S. Department of Labor for use during the fiscal year. The provisional rate is used for planning purposes, and indirect costs charged to federal programs are based on actual indirect costs incurred. The approved provisional rate is applied to total direct wages and benefits for awards to which the rate is authorized. PacMtn will submit a final indirect cost rate proposal after year-end in accordance with 2 CFR 200.414(c)(1).
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including PacMtn’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. PacMtn has determined that it complied with all applicable cost principles for the federal awards presented.
Federal awards are classified for reporting purposes in accordance with 2 CFR Part 200 and the Office of Management and Budget’s Compliance Supplement. Federal awards are grouped into clusters of programs when such programs share common compliance requirements. All other federal awards that are not part of a cluster or identified as program-specific awards are reported as general awards (non-cluster awards). For the year ended June 30, 2025, PacMtn administered the following federal award groupings: • WIOA Cluster: CFDA 17.258, 17.259, 17.278 • National Dislocated Worker Grant (NDWG) Cluster: CFDA 17.277 • ARPA Cluster: CFDA 21.027 • General Award: Reintegration of Ex-Offenders (REO), CFDA 17.270 o CFDA 17.270 is not identified as part of any federal cluster in the OMB Compliance Supplement and is therefore classified as a general award. PacMtn had no program-specific awards during the year.