Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedules 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of INCA, under programs of the federal and state government for the year ended January 31, 2022. The information in the schedule of expenditures of federal awards is presented in accordance with the requirement of the Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedules present only a selected portion of the operations of INCA, they are not intended to and do not present the financial position, changes in net assets or cash flows
Title: CONTINGENT LIABILITIES
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedules 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
INCA participates in a number of federal and state assisted programs. These programs are audited in accordance with Government Auditing Standards and the Single Audit Act amendments of 1996, if applicable, in accordance with the required levels of Federal Financial assistance. Audits of prior years have not resulted in any significant disallowed costs. Additionally, the grant programs are subject to audits by the grantors or their representatives, the purpose of which is to insure compliance with conditions precedent to the granting of the funds. Such audits could lead to requests for reimbursement to the grantor agency for expenses disallowed under the terms of the grant.
Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedules 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with the grantor agencies because of accruals made in the schedule which will be included in future reports with agencies
Title: SUBRECIPIENTS
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedules 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
INCA has no subrecipients.
Title: INDIRECT COST RATES
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedules 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
INCA has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.