Notes to SEFA
Accounting Policies: General
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of Magnolia Community Services, Inc. (Magnolia). Magnolia’s reporting entity is defined in Note 1 to the financial statements for the year ended June 30, 2023. All federal awards received directly from federal agencies are included on the schedule, as well as federal awards passed through other government agencies.
b. Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to Magnolia’s financial statements for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: INDIRECT COST RATE
Magnolia has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended June 30, 2023, $212,587 of indirect costs were included in Schedule of Expenditures of Federal Awards.