Notes to SEFA
Accounting Policies: 1.GENERAL INFORMATIONThe accompanying schedule of expenditures of federal awards and state financial assistance presents the activities in all the federal and state financial assistance programs of Kessler Foundation, Inc. All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies or not-for-profit organizations are included on the schedule.2.BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards and state financial assistance is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal and state awards expenditures are reported on the statements of operations and changes in net assets as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards and state financial assistance due to program expenditures exceeding grant or contract budget limitations or capitalization policies required by accounting principles generally accepted in the United States of America which are not included as federal and state awards.4.INDIRECT COST RATEThe Foundation has an approved indirect cost rate of 44.4% that was applied to federal awards, unless otherwise limited by the contracting agency.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.