Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (SEFA) was prepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and summarizes the federal expenditures of FHI 360 under programs of the federal government for the year ended September 30, 2025. Because the SEFA presents a selected portion of the operations of FHI 360, it is not intended to and does not present the financial position, changes in net assets, or cash flows of FHI 360. For purposes of the SEFA, federal awards include awards entered into directly between FHI 360 and agencies and departments of the federal government, or via pass-through entities.
Expenses are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in Subpart E of the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited to reimbursement. Grant funds are expended for purposes specified by the granting agencies. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to Federal awards per the Company’s negotiated indirect cost rate agreement (NICRA). Negative amounts on the SEFA are adjustments to expenditures reported in the prior year.
The expenses reported on the SEFA are inclusive of indirect costs incurred during the year ended September 30, 2025. FHI 360 did not elect to use the 10% or 15% de minimis indirect cost rate, as applicable, permitted by the Uniform Guidance.