Notes to SEFA
Title: Note 3 - Program Costs
Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Councils government-wide financial statements, which are prepared on the accrual basis, in accordance with Generally Accepted Accounting Principles (GAAP).
De Minimis Rate Used: N
Rate Explanation: The Council has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Council allocates indirect costs pro-rata to programs each month based on a negotiated indirect rate as a subrecipient of the federal award pass-through agency. This rate is based on direct labor hours incurred by programs during the month. During the year ended June 30, 2022, $360,995 was allocated to Federal grant programs based on 18,437 total direct labor hours.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Council's portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations 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. Included in the total amounts expended for federal programs were costs passed through to subrecipients in the amount of $5,668,546.