Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of DigitalC (the Organization) under programs of the federal government for the year ended December 31, 2025. The information in this 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The Organization did not elect to use the de minimis rate of 15% for the year ended December 31, 2025. The Organization included approximately $1,700,000 of federal expenditures on the schedule of federal expenditures for the year ended December 31, 2024, that were not recognized on the 2024 financial statements as all conditions were not met to obtain reimbursement from the grantor as of December 31, 2024. These funds were recognized as revenue in the 2025 financial statements as all grant requirements were met during 2025.