Notes to SEFA
Accounting Policies: (1) BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal, state and city awards presents the governmentalprogram activities of Gemma Services. All federal, state and city awards passed through governmental ornot-for-profit entities are included on the schedule of expenditures of federal, state and city awards. Theinformation in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedulemay differ from amounts presented in, or used in the preparation of, the basic financial statements.(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited to reimbursement. Gemma Services has elected not to use the10-percent de minimus indirect cost rate allowed under the Uniform Guidance.(3) RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal, state and city award expenditures are reported on the statements of activities as program expenses.In certain programs, the expenditures reported in the basic financial statements may differ from expendituresreported in the schedule of expenditures of federal, state and city awards due to presentation differences fornon-grant sources which provided support for the program.
De Minimis Rate Used: N
Rate Explanation: Gemma Services has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.