Notes to SEFA
Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of federal programs of South Coast Childrens Society, Inc. (the Organization). For purposes of the Schedule, federal awards include both federal financial assistances received directly from a federal agency, as well as federal funds received indirectly by the Organization from non-federal entities. The information in the Schedule is presented in accordance with the requirements of 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.2.BASIS OF ACCOUNTINGExpenditures reported on this schedule are presented under the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under the accrual basis of accounting, expenditures reported include any property or equipment acquisitions incurred under the award programs in the fiscal year.3.SUBRECIPIENT EXPENSEThere were no payments made to sub-recipients for the year ended June 30, 2022.4.CONTINGENCIESUnder the terms of federal grants, additional audits may be requested by the grantor agencies, and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies. As of June 30, 2022, the Organization maintained a reserve for such contingencies in the amount of $240,417.5.INDIRECT COSTSThe Organization has a negotiated indirect cost rate. The Organization has not elected to use the 10 percent de minimus cost rate allowed under Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.