Notes to SEFA
Title: NOTE 2 RECONCILIATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO ST
Accounting Policies: Basis of presentation The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in the Alleys financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing the Alleys negotiated indirect cost rates; therefore, the Alley does not use the 10% de minimis rate. The Alley has no subrecipients.Because the schedule presents only a selected portion of the operations of the Alley, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Alley.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The U. S. Small Business Administration, under COVID relief legislation, awarded the Alley a Shuttered Venue Operators Grant for reimbursement of certain operating expenses for the period from March 2020 through December 2021. Federal expenditures reported on the schedule of expenditures of federal awards were recorded as expenses in Alleys financial statements in fiscal years 2020 and 2021, in accordance with generally accepted accounting principles.