Notes to SEFA
The accompanying schedules of expenditures of federal, state and local government awards (the Schedules) summarize expenditures charged to federal, state and local government awards administered by Goodwill Industries of Southeastern Wisconsin, Inc. and Affiliates (collectively, Goodwill) for the year ended December 31, 2025. The information in the Schedules is presented 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) and the State Single Audit Guidelines (Guidelines). Because the Schedules present only a selected portion of the operations of Goodwill, it is not intended to and does not present the financial position, changes in net assets or cash flows of Goodwill. Management reviews the expenditures of federal, state, and local government awards for each entity that comprise Goodwill and determines if a separate audit is required under Uniform Guidance and the Guidelines. Expenditures for the following consolidated subsidiaries of Goodwill are not included to meet the requirements of the Uniform Guidance and the Guidelines because they do not require an audit under the Uniform Guidance and the Guidelines: Goodwill Retail Services, Inc. Goodwill Manufacturing, Inc. Goodwill TalentBridge, LLC
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable.
Goodwill has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Goodwill did not pass-through federal, state or local funds to subrecipients during the year ended December 31, 2025.
All federal, state and local government awards are subject to review and audit by grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards. It is the opinion of management that all costs charged against federal, state and local awards are allowable under the regulations of those programs.