Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Disability Rights California (DRC) and is presented on the accrual basis of accounting for the year ended September 30, 2025. Such expenditures are recognized following the cost principles in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the schedule of expenditures of federal awards presents only a selected portion of the operations of DRC, it is not intended to, and does not present the consolidated financial position, changes in net assets, functional expenses, or cash flows of DRC.
Expenditures – Expenditures identifiable with specific programs are charged directly to the applicable program. Administrative personnel costs are allocated monthly based on the pro-rata share of the direct billable time for each grant/contract. Other shared costs (e.g., supplies, occupancy) are allocated to specific programs based upon the pro-rata share of the total number of programmatic staff working in each location and their full time equivalent for each grant/contract. Equipment – Equipment costing less than $5,000 is recorded as an expenditure of the applicable program when acquired. Property and equipment costing $5,000 or more is capitalized and depreciated using the straight-line method over estimated useful lives ranging from three to five years.
The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use the de minimis reimbursement rate. DRC does not have an approved indirect cost rate and has elected to use the de minimis reimbursement rate as allowed under Uniform Guidance.
DRC receives program income in the form of proceeds realized from court judgments related to grant-funded activities. Program income is recognized when received and is reported in the Schedule of Expenditures of Federal Awards when expended to further the purpose of the grant.