Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of Headwaters Economics, Inc. (the “Organization”) under programs of the federal government for the year ended December 31, 2025 and is presented on the accrual basis of accounting. The information in the schedule is 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). Because the schedule presents only a selected portion of the operations of Headwaters Economics, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Headwaters Economics, Inc.
The Organization does not have a federally negotiated indirect cost rate and therefore applies the de minimis indirect cost rate permitted under 2 CFR 200.414(f). For federal awards issued prior to October 1, 2024, the Organization applied the 10% de minimis indirect cost rate to Modified Total Direct Costs (MTDC), consistent with the Uniform Guidance in effect at the time. For federal awards issued on or after October 1, 2024, the Organization applies the revised 15% de minimis indirect cost rate, as provided under the 2024 Uniform Guidance revisions, which increased the allowable de minimis rate from 10% to 15%. Federal agencies may elect to apply the updated guidance to awards issued before this date; the Organization follows the rate specified in each award’s terms and conditions. The Organization applies the de minimis rate consistently across all applicable federal awards and charges costs as direct or indirect in accordance with 2 CFR 200.1 and 200.414(f). No indirect costs are double charged to federal programs