Notes to SEFA
Accounting Policies: Basis of Accounting - The SEFA is prepared on the modified cash basis of accounting (See full note disclosures for further info). Reporting Entity - The ESU, for purposes of the SEFA, includes all funds for which the ESU is financially accountable. Pass-Through Awards - The ESU receives certain federal awards in the form of pass-through awards from the State of Nebraska and other various agencies. Such amounts received as pass-through awards are specifically identified on the SEFA. Subrecipients - ESU 2 serves as the administrative conduit for passing through federal grant funds to various school districts. Contingencies - The ESU receives funds under various federal grant programs, and such assistance is to be expended in accordance with the provisions of the grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.