Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to Habitat's basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Costs that are allowable are charged to the program, grant or activity as follows: (1) The Organization treats each funding source as a cost center. Each cost center's receipts and expenditures are tracked separately. Current tracking is done in the accounting system using a separate Class for each grant, but other methods are allowable that track each funding source separately. (2) Direct costs are costs incurred solely for the purpose of one cost center. All allowable direct costs are to be charged directly to the funding source to which they go. (3) Shared costs are those costs which can be identified to more than one funding source. Shared costs are first grouped according to the cost centers to which they render services or provide benefits. The aggregate expenses of each group are then allocated to the benefiting cost center based on the percentage of square footage. The square footage occupied by or used for the benefit of each cost center is divided by the total square footage to determine the percentage of expense allocation.
Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Habitat under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance wit the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Habitat, it is not intended to and does not present the financial position, changes in net position, or cash flows of Habitat.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to Habitat's basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Costs that are allowable are charged to the program, grant or activity as follows: (1) The Organization treats each funding source as a cost center. Each cost center's receipts and expenditures are tracked separately. Current tracking is done in the accounting system using a separate Class for each grant, but other methods are allowable that track each funding source separately. (2) Direct costs are costs incurred solely for the purpose of one cost center. All allowable direct costs are to be charged directly to the funding source to which they go. (3) Shared costs are those costs which can be identified to more than one funding source. Shared costs are first grouped according to the cost centers to which they render services or provide benefits. The aggregate expenses of each group are then allocated to the benefiting cost center based on the percentage of square footage. The square footage occupied by or used for the benefit of each cost center is divided by the total square footage to determine the percentage of expense allocation.
Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to Habitat’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement.
Title: Major Program
Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to Habitat's basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Costs that are allowable are charged to the program, grant or activity as follows: (1) The Organization treats each funding source as a cost center. Each cost center's receipts and expenditures are tracked separately. Current tracking is done in the accounting system using a separate Class for each grant, but other methods are allowable that track each funding source separately. (2) Direct costs are costs incurred solely for the purpose of one cost center. All allowable direct costs are to be charged directly to the funding source to which they go. (3) Shared costs are those costs which can be identified to more than one funding source. Shared costs are first grouped according to the cost centers to which they render services or provide benefits. The aggregate expenses of each group are then allocated to the benefiting cost center based on the percentage of square footage. The square footage occupied by or used for the benefit of each cost center is divided by the total square footage to determine the percentage of expense allocation.
Habitat has two major programs. Home Investment Partnership Program with current year expenditures of $332,979 and AmeriCorps with current year expenditures of $353,198 as defined in the Uniform Guidance. Since Habitat is a high-risk auditee, coverage of at least 40 percent of federally awarded funds was required. Actual coverage was approximately 68 percent of total federally awarded expenditures.