Notes to SEFA
The accompanying schedules of expenditures of federal awards and state financial assistance (the Schedules) includes the federal and state award activity of Legal Aid of East Tennessee (the Organization) under programs of the federal government and the State of Tennessee for the year ended December 31, 2025. The information in these Schedules are 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), the LSC Audit Guide and the State of Tennessee Audit Manual. Because the Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, changes in net assets or cash flows of the Organization.
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.
The Organization has elected to use the 10% (or 15%, if applicable) de minimis indirect cost rate as allowed under the Uniform Guidance when indirect costs are provided by the applicable grant.