Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Rainforest Alliance, Inc. and Subsidiaries (the "Organization") under programs of the federal government for the year ended December 31, 2025. The information in the Schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Organization.
Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in the Schedule as expenditures maydiffer from certain financial reports submitted to federal funding agencies due to those reports being submitted oneither a cash or modified accrual basis of accounting. Federal program expenditures are generally reported on the consolidated statement of functional expenses as program services. In certain programs, the expenditures reported in the consolidated financial statements may differ from the expenditures reported in the Schedule due to certain reports being prepared prior to fiscal year endclose adjustments or prepared on the cash basis of accounting, capitalization of assets, or expenditures in excessof the contract budgets which are not allowable.
The Organization has a federally negotiated indirect cost rate. In connection with its ongoing relationship with the United States Agency for International Development and regulatory provisions for its negotiated indirect cost rate agreement, the Organization has finalized rates through 2019 and has been given provisional rates for 2020 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. The Organization has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance.