Notes to SEFA
Title: Note C - Food Commodities
Accounting Policies: Note A - Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Food Bank of North Central Arkansas Inc., under specific programs of the federal government for the yearended December 31, 2022. The information in this Schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portionof the operations of Food Bank of North Central Arkansas Inc., it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of Food Bank of North Central Arkansas Inc. Note B - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Food commodities are expended when distributed. Distributed food is reported in the schedule of expenditures of federal awards under the Trade Mitigation Food Purchase and Distribution Program, National School Lunch Program, and Emergency Food Assistance Program and is valued at the price provided by the Arkansas Departmentof Human Services. During the year ended December 31, 2022, the Organization distributed and expended $140,230 in food commodities received under the Trade Mitigation Food Purchase and Distribution Program during 2022 and held in inventory at December 31, 2021. As of December 31, 2022, $149,928 was included in food inventory for the National School Lunch Program, andhad not been expended.