Notes to SEFA
Accounting Policies: NOTE 1 GENERALThe accompanying schedule of expenditures of federal awards (SEFA) includes the federal grantactivity of Southern California Institute for Research and Education (the Institute) underprograms of the federal government for the year ended September 30, 2022. The information inthe SEFA is presented in accordance with the standards applicable to financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the United States ofAmerica, and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the schedule of expenditures of federal awards presents only aselected portion of the operations of the Institute, it is not intended to and does not present thefinancial position, changes in net assets or cash flows of the Institute. Federal awards receiveddirectly from federal agencies as well as federal awards passed through universities and otheragencies are included in the schedule.NOTE 2 BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards is presented using the accrual basisof accounting which is described in the notes to the Institutes financial statements. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122, CostPrinciples for Non-Profit Organizations, and Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards, where certain types of expenditures are not allowable or are limited as to reimbursement.NOTE 3 RELATIONSHIP TO FEDERAL AWARDS REPORTSAmounts reported in the accompanying schedule of expenditures of federal awards agree with theamounts reported in the related federal financial reports for all major federal programs.NOTE 4 PASS-THROUGH AWARDS TO SUBRECIPIENTSIncluded in the accompanying schedule of expenditures of federal awards are amounts passedthroughto subrecipients. For the year ended September 30, 2022, there were four subrecipientstotaling $129,690 for the alcohol research programs.
De Minimis Rate Used: N
Rate Explanation: The SEFA includes both direct and indirect costs expended for all grants. The indirect costsexpensed under federal awards are based on an annual rate which is negotiated with and approvedby the Cost Allocation Services at the U.S. Department of Health and Human Services.