Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Rural Action, Inc. (a nonprofit organization) (the Organization) under programs of the federal government for the year ended December 31, 2025. The information on this Schedule is prepared in accordance with the 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). 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.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 may or may not be allowable or may be limited as to reimbursement.
The Organization has a provisional negotiated indirect cost rate agreement (NICRA) with the Department of Interior for 25.66% calculated on salary and fringe costs. For grant sources which do not allow the NICRA or were in agreement prior to January 1, 2025, the Organization has elected to use the 15-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization passes certain federal awards received from Appalachian Regional Commission, United States Department of Agriculture, and other federal agencies to other not-for-profit agencies (subrecipients). As Note B describes, the Organization reports expenditures of Federal awards to subrecipients on an accrual basis of accounting. As a subrecipient, the Organization has certain compliance responsibilities, such as monitoring its subrecipient to help assure they use this subaward as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Certain Federal programs require the Organization to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The Organization has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.