Notes to SEFA
Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: ACDI/VOCA negotiates and utilizes an indirect cost rate with the federal government and therefore does not use the 10% de minimus cost rate option. ACDI/VOCA allocates indirect expenses at the agreed upon provisional rates established by U.S. Agency for International Development (USAID) for administrative overhead on federal grants.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of ACDI/VOCA under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements 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 ACDI/VOCA, it is not intended to and does not present the financial position, changes in net assets or cash flows of ACDI/VOCA. Amounts to subrecipients shown separately on the Schedule are also a component of the federal expenditures presented.
Title: Note 4. Monetization
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: ACDI/VOCA negotiates and utilizes an indirect cost rate with the federal government and therefore does not use the 10% de minimus cost rate option. ACDI/VOCA allocates indirect expenses at the agreed upon provisional rates established by U.S. Agency for International Development (USAID) for administrative overhead on federal grants.
Under U.S. Public Law 480, Title II, the United States Department of Agriculture (USDA) has provided agricultural commodities to ACDI/VOCA for the purpose of promoting food security and agricultural market development under the Food for Progress Program. During the year ended December 31, 2022, ACDI/VOCA had three USDA Food for Progress awards active in the following countries: Ghana, Jamaica and Philippines. The commodities granted to ACDI/VOCA are sold as received to local agro-processing firms or other local buyers. The proceeds from the sales of donated commodities are used to finance ACDI/VOCAs development activities in the above-mentioned countries. At December 31, 2022, ACDI/VOCA had $4,226,965 of funds on hand from such activities.