Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Financial Assistance present the activity of all federal and state awards of the organization. All federal and state awards, with current year activity, received directly from federal, state, and local agencies, passed through other government agencies, are included in the Schedules.
Amounts reported in the accompanying schedules agree, in all material respects, with the amounts reported in the financial statements.
Amounts reported in the accompanying schedule agree, in all material respects, with the amounts reported in related federal and state financial reports. However, the basis of accounting prescribed by the pass-through agency for the preparation of expenditure reports is different than the accrual basis of accounting. The basic difference between the two bases of accounting is that the equipment purchased with program funds are included as expenditures in the expenditure reports, while GAAP requires these items to be capitalized and depreciated over their useful lives.
Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs.