Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Karidat and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The financial statements of Karidat are prepared using the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (U.S GAAP) and in accordance with the Financial Accounting Standards Codification (FASB ASC) Section 958-205, Presentation of Financial Statements of Not-for-Profit Organizations. Under FASB ASC 958-205, Karidat is required to report information regarding its financial position and activities according to two classes of net assets: restricted and unrestricted. Net Assets without Donor Restriction are those assets presently available for use by the Organization. Net Assets with Donor Restriction are those assets which are subject to donor-imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a donor restriction expires or is satisfied, restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Karidat has determined that all assets, revenues, expenses, gains and losses resulting from CNMI Government appropriations and Federal grants are unrestricted and restricted, respectively.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.