Notes to SEFA
The accompanying schedule of expenditures of federal awards and state financial assistance has been prepared on the accrual basis of accounting. Under this method, expenditures are recognized when incurred. Expenditures are subject to audit by the granting agency and, in the opinion of management, disallowed costs, if any, will not have a material effect on Boys Town’s federal programs and state projects.
Federal award expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual, federally sponsored project. The salary of a principal investigator of a sponsored research project and the materials consumed by the project are examples of direct costs. Unlike direct costs, indirect costs cannot easily be identified with an individual federally sponsored project. Indirect costs are the costs of services and resources that benefit both sponsored and nonsponsored projects and activities. Indirect costs consist of expenses incurred for administration, maintenance, debt, and building and equipment depreciation. Boys Town and federal agencies use an indirect cost rate to charge indirect costs to individual federally sponsored projects. Boys Town has provisional rates for organized research and other sponsored activities that have been approved by the U.S. Department of Health and Human Services. When specifically stated in respective grant agreements, lower facilities and administrative cost rates were used. Boys Town has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Child Welfare expenditures represent contracts with states and placement agencies to provide services to at-risk youth and their families. Boys Town has been determined to be a subrecipient under these arrangements by the granting agency. Expenditures reported within the schedule represent the percentage of the contract funded by the specific federal program as communicated by the granting agency.