Notes to SEFA
The schedule of expenditures of federal award (‘the Schedule”) is prepared on the accrual basis of accounting. Allowability is determined according to the principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under those cost principles, types of expenditures are not allowable or are limited as to reimbursement. Because the Schedule presents only a selected portion of the operations of SMTCCAC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of SMTCCAC.
The Uniform Guidance audit was performed for the year ended June 30, 2025. All federal awards received by SMTCCAC directly or indirectly have been included in the schedule of federal awards and are within the scope of the audit pursuant to the Uniform Guidance.
Allowable indirect costs are allocated based on direct salaries and fringe benefits to programs. The rate was not in excess of the de minimis indirect cost rate of 10% of modified total direct costs prior for July 2024 through October 2024 and 15% of modified total direct costs after October 2024 for all federal awards. The base amount used for the calculation and allocation to programs was salaries and benefits. SMTCCAC’s approved indirect cost rate agreement of 22% of salaries and fringe benefits expired on June 30, 2024.