Notes to SEFA
Title: PROGRAM CLUSTERS
Accounting Policies: The accompanying schedules are prepared and presented using the accrual basis of accounting. This basis of accounting is described in Note 1 to the Institutions basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation 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 Mount Desert Island Biological Laboratory, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Mount Desert Island Biological Laboratory; therefore some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Governmental Accounting Standards Board (GASB) Statement No. 33 provides that grant revenue should be recognized when all applicable eligibility requirements are met, and, under accrual accounting, when the resources are available. Therefore, the proceeds of grants which do not specify time requirements, and for which all other eligibility requirements have been met, are recognized as revenues in the current fiscal year. Expenditures are recognized in the fiscal year spent for the required purpose.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
OMB Circular A-133 defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, similar programs deemed to be a cluster of programs are tested accordingly.
Title: CONTINGENCY
Accounting Policies: The accompanying schedules are prepared and presented using the accrual basis of accounting. This basis of accounting is described in Note 1 to the Institutions basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation 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 Mount Desert Island Biological Laboratory, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Mount Desert Island Biological Laboratory; therefore some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Governmental Accounting Standards Board (GASB) Statement No. 33 provides that grant revenue should be recognized when all applicable eligibility requirements are met, and, under accrual accounting, when the resources are available. Therefore, the proceeds of grants which do not specify time requirements, and for which all other eligibility requirements have been met, are recognized as revenues in the current fiscal year. Expenditures are recognized in the fiscal year spent for the required purpose.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Mount Desert Island Biological Laboratory. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.