Notes to SEFA
Accounting Policies: (1)Expenditures on the Schedule are reported on the cash basis of accounting. 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.(2)FKCO did not elect to use the 10% de minimus cost rate
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.