Notes to SEFA
Accounting Policies: 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all federal grantactivity of Friends of the Children - National and is presented using the accrual basis of accountingin accordance with accounting principles generally accepted in the United States of America. Theinformation in the SEFA is presented in accordance with the requirements of Title 2 of U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in theSEFA may differ from amounts presented in, or used in the preparation of, the basic consolidatedfinancial statements.Because the SEFA presents only a selected portion of the operations of Friends of the Children -National, it is not intended to, and does not, present the financial position, changes in net assets, orcash flows of Friends of the Children - National.2. ExpendituresExpenditures reported on the SEFA are recognized following the cost principles in UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.