Notes to SEFA
Title: Basis of Funding
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government for the year ended September 30, 2022. The information in the Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Adminstrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The accompanying schedule of expenditures of federal awards uses the accrual basis of accounting. This basis of accounting recgonizes revenue in the accounting period in which it is earned. Expenditures are recorded in the accounting period in which the liability is incurred. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant and, accordingly, when such funds are received, they are recorded as deferred revenue until earned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal funding received related to various grant programs is based upon periodic reports detailing reimbursable expenditures made in compliance with the program guidelines to the grantor agencies. The programs are governed by various rules and regulations of the grantors. Amounts received and receivable under the various funding programs are subject to periodic audit and adjustment by the funding agencies. To the extent, if any, that the Organization has not complied with all the rules and regulations with respect to performance, financial or otherwise adjustment to or return of funding may be required. In the opinion of management, there are no significant contingent liabilities related to matters of compliance and accordingly, no provision has been made in the financial statements for such contingencies.