Notes to SEFA
Accounting Policies: NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND REPORTING ENTITY(1)GeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of COSSMA, Inc. (the Center). All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies to the Center are included in the accompanying schedule.(2)Basis of AccountingThe accompanying schedule of expenditures of federal awards includes the federal grant activity of the Center and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards (Uniform Guidance), Audits of States, Local Governments, and Non-Profit Organizations.(3)Relationship to Federal Financial ReportsAmounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts reported in the related federal financial reports. However, certain federal financial reports are filed based on cash expenditures. As such, certain timing differences may exist in the recognition of revenue and expenditures between the schedule of Expenditures of Federal Awards and the federal financial reports.(4)Federal CFDA NumberThe Catalog of Federal Domestic Assistance (CFDA) number is a program identification number. The first two digits identify the federal department or agency that administers the program and the last three numbers are assigned by numerical sequence accordingly with the program name within the corresponding agency.The CFDA numbers included in this report were determined based on the program name, review of grant contract information, and the Office of Management and Budgets Catalog of Federal Domestic Assistance. NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND REPORTING ENTITY (Continuation)(5)Pass-Through Grantors NumberState or local government and private entities includes within their federal proposal award the related amount of federal awards granted to the Center, also known as pass-through awards. The Center should consider these federal funds as though they were received directly from the federal government. Uniform Guidance requires that the schedule should include the name and the identifying number assigned for federal awards received as a sub recipient. Numbers identified as NA are not applicable or not available.(6)Indirect Cost RateCOSSMA has elected not to use the 10% de minimis indirect cost rate as allowed under the uniform guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.