Notes to SEFA
Accounting Policies: The Organizations policy is to prepare the Schedule of Expenditures of Federal Awards on the cash basis of accounting; consequently, certain revenues are recognized when received rather than when earned, and certain expenses are recognized when cash is disbursed rather than when the obligation is incurred. This basis differs from generally accepted accounting principles primarily because the Organization has not recognized accounts receivable and accounts payable and their related effects on revenue recognized and expenditures in the Schedule of Expenditures of Federal Awards. Such expenditures are recognized following thecost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.