Notes to SEFA
Accounting Policies: 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (SEFA) includes thefederal award activity of NADO and the Foundation under the programs of the federalgovernment for the year ended December 31, 2022. The information in the SEFA ispresented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the SEFA presents onlya selected portion of the operations of NADO and the Foundation, it is not intended to,and does not, present the financial position, changes in net assets, or cash flows of NADOand the Foundation.2. Summary of Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.3. Indirect Cost RatesNADO and the Foundation record expenditures of federal awards using the indirect costand fringe benefit rates per the non-profit rate agreement with the federal government,which was approved in accordance with the authority in the Uniform Guidance. In thismanner, NADO and the Foundation have elected not to use the 10% de minimis indirectcost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.