Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the activities in all the Federal programs of KCS 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of KCS, it is not intended to and does not present the financial position, changes in net assets, or cashflows of KCS.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
KCS has not elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.