Notes to SEFA
The above schedule of expenditures of federal awards includes the federal grant activity of the Organization and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
In accordance with the 2024 Uniform Guidance revisions, a hybrid approach for the indirect cost rate is used. A 10 percent de minimis indirect cost rate is applied to federal awards issued prior to October 1, 2024. For new awards or amendments executed on or after October 1, 2024, a 15 percent de minimis indirect cost rate is applied. For the year ended December 31, 2025, Housing Resource Center of Monterey County elected not to use either the 10 percent or 15 percent de minimis cost rate allowed under the Uniform Guidance.