Notes to SEFA
Accounting Policies: 1.GENERAL INFORMATIONThe accompanying schedule of expenditures of federal awards (the Schedule) presents the activities in all federal awards of Windmill HDFC (the Organization). All financial assistance received directly from federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations are included on the Schedule 2. BASIS OF ACCOUNTING The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported in the Schedule were obtained from the appropriate federal financial reports for the applicable program and periods. The amount reported in these federal financial reports fare 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal expenditures are reported on the statement of activities as operating expenses before depreciation. The expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions that are not included as federal awards.4. BASIS OF PRESENTATION The accompanying Schedule includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements 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, or cash flows of the Organization.5. INDIRECT COSTS The Organization does not have a federally negotiated indirect cost rate and has not elected to use the 10% de minimis rate as covered in Section 200.414 in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.