Notes to SEFA
Title: Reconciliation of Expenditures of Federal Awards to the Financial Statement
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Nine Star Enterprises, Inc. (NSE). The information in the SEFA 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). Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other entities is included on the SEFA. NSEs reporting entity is defined in Note 1 to NSEs financial statements.
De Minimis Rate Used: N
Rate Explanation: Basis of AccountingThe accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of NSEs financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NSE has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The following is a reconciliation of grant revenue reported in the financial statements to expenditures reported in the schedule of expenditures of federal awards.Total government grants as reported on the financial statements $ 1,510,555Less: State grants (114,169)Less: Local grants (388,892)Total expenditures per schedule of expenditures of federal awards $ 1,007,494