Notes to SEFA
Wesley receives federal grants to carry out its programs and services for low-income families in the Near Northside of Houston, Texas and its surrounding communities.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Wesley expended federal awards in the form of noncash food commodity assistance. There were no federal awards expended in the form of insurance and there were no federal program loans or loan guarantees outstanding at year end.
Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule may differ from amounts reflected in the financial reports submitted to grant awarding agencies for the following reasons: • Expenses accrued at the end of Wesley’s fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end; • Program matching costs that are reported in the financial reports submitted to awarding agencies are not included in the amounts reported in the Schedule; and • Differences may exist between grant periods and Wesley’s accounting period.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored and reviewed by the grantors. Failure to satisfy the requirement of contract agreements could result in disallowed costs and return of funds to grantors. Management believes that Wesley is in substantial compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts and disclosures in the financial statements.