Notes to SEFA
Title: B. Indirect Cost Rate
Accounting Policies: A. Basis of Presentation - The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Permian Basin Regional Council on Alcohol and Drug Abuse (the Organization) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U. S. Code of Federal Regulations (CFR)Part 200, Uniform Administration Requirements, Cost of Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net position or cash flows of the Organization.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. See note B, last sentence.
Indirect costs shown on the Schedule of Expenditures of Federal Awards are properly credited as revenues. These indirect cost revenues are determined by applying approved indirect cost rates to actual applicable expenditures of the projects. The Organization has elected to use the 10% de minimis cost rate as covered in 2 CFR Part 200.414, Indirect costs.