Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is a supplementary schedule to the financial statements of The Salvation Army USA, Western Territory, Northwest Division (the “Division”), and is presented for the purpose of additional analysis. The Schedule includes the federal grant activity of the Division under programs of the federal government for the year ended September 30, 2025. The information in this Schedule is presented in accordance with the requirement of Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) 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 activities of the Division, it is not intended to, and does not, present either the financial position, changes in net assets, or cash flows of the Division. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, when applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Assistance Listing Number (ALN) numbers are presented for those federal programs for which numbers are available. Pass‐through entity identifying numbers are presented where available. BASIS OF PRESENTATION—FINANCIAL STATEMENTS The accompanying financial statements have been prepared in accordance with the national accounting policies of The Salvation Army. These policies are consistent with accounting principles generally accepted in the United States of America.
The Division has not elected to use the de minimis indirect cost rate.
The Division is the sub-recipient of federal funds, which have been reported as expenditures and listed as federal pass-through funds.
The regulations and guidelines governing the preparation of Federal, and state financial reports vary by state and federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal and state financial reports do not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards, which is prepared as explained in Note 1 above.
Certain costs reflected in the Schedule in the current year may represent costs incurred in prior years that have been approved for reimbursement by the granting agency and recorded in the current year schedule.
The negative amounts shown in the Schedule resulted from adjustment or credits made in the normal course of business to amounts reported as expenditures in prior fiscal years.