Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Mercy Haven, Inc. (the “Organization”), a nonprofit organization as defined in Note 1 to the Organization’s financial statements, under programs of the federal government for the year ended December 31, 2025. The information in this Schedule is presented in accordance with the requirement 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, functional expenses or cash flows of the Organization.
The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the general purpose financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are either not allowable or are subject to limitations on reimbursement.
The total amount provided to subrecipients from each federal program is presented on the face of the Schedule.
The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Matching costs (i.e. the Organization’s share of certain program costs) are not included in the reported expenditures.
No insurance is carried specifically to cover equipment purchased with Federal funds. Equipment purchased with Federal funds is covered by the Organization’s casualty insurance policy. There were no loans or loan guarantees outstanding at year-end.
The Organization has determined that federal programs with expenditures of $1,000,000 or more are Type A Programs. The Organization evaluated its Type A programs in accordance with the risk-based approach prescribed by the Uniform Guidance to determine which programs were required to be audited as major programs.