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(ix) Provide advice to auditees as to how to handle changes in fiscal years. (2) Gasoline taxes, motor vehicle fees, and other taxes that are in effect user fees for benefits provided to the Federal Government are allowable. (5) It is the IHE’s practice to similarly compensate students under Federal awards as well as other activities. (4) Income taxes paid by an employee related to reimbursed relocation costs. (3) Closing costs, such as brokerage, legal, and appraisal fees, incident to the disposition of the employee’s former home.
Expenditures means charges made by a non-Federal entity to a project or program for which a Federal award was received. (2) Is distinguished from a grant in that it provides for substantial involvement of the Federal awarding agency in carrying out the activity contemplated by the Federal award. Computing devices means machines used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information. See also the definitions of supplies and information technology systems in this section. This method is acceptable provided each joint cost is prorated using an acceptable base.
Model Cost Policy Statement
Examples are whether construction is an allowable activity, if there are any limitations on direct costs such as foreign travel or equipment purchases, and if there are any limits on indirect costs (or facilities and administrative costs). Applicants must be advised if Federal awards will not allow reimbursement of pre-Federal award costs. (5) The circumstances concerning why the auditor’s report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (c) The costs of idle capacity are normal costs of doing business and are a factor in the normal fluctuations of usage or indirect cost rates from period to period. Widespread idle capacity throughout an entire facility or among a group of assets having substantially the same function may be considered idle facilities.
(2) When audit findings were not corrected or were only partially corrected, the summary schedule must describe the reasons for the finding’s recurrence and planned corrective action, and any partial corrective action taken. When corrective action taken is significantly different from corrective action previously reported in a corrective action plan or in the Federal agency’s or pass-through entity’s management decision, the summary schedule must provide an explanation. In some cases, a program-specific audit guide will be available to provide specific guidance to the auditor with respect to internal controls, compliance requirements, suggested audit procedures, and audit reporting requirements.
Nonprofit organization audit checklists and expert guidance
Financial obligations, when referencing a recipient’s or subrecipient’s use of funds under a Federal award, means orders placed for property and services, contracts and subawards made, and similar transactions that require payment. Discretionary award means an award in which the Federal awarding agency, in keeping with specific statutory authority that enables the agency to exercise judgment (“discretion”), selects the recipient and/or the amount of Federal funding awarded through a competitive process or based on merit of proposals. A discretionary award may be selected on a non-competitive basis, as appropriate.
- For example, a Federal awarding agency may want to include Section A information about the types of non-Federal entities who are eligible to apply.
- The cognizant agency for indirect costs assignment is described in Appendix V, section F.
- In addition to all of the inherent benefits of conducting a nonprofit financial audit, there are also charity watchdogs who provide information about charities to potential donors.
- The amount of the gain or loss to be included as a credit or charge to the appropriate asset cost grouping(s) is the difference between the amount realized on the property and the undepreciated basis of the property.
- Notwithstanding the constitutional provision, however, Section 30(f) of the Tax Code imposes taxes on the income of non-stock educational institutions derived from any of their properties (real or personal) or their economic activities.
To that end, we have built a network of industry professionals across higher education to review our content and ensure we are providing the most helpful information to our readers. Recipients and subrecipients law firm bookkeeping in the less affected areas are encouraged to submit their reports as soon as possible. Efficiently find organizations that will meet your goals and gain more valuable partnerships with GuideStar Pro.
Frequently Asked Questions About GAAP
This fee should reflect costs incurred by the Federal agency and the non-Federal entity. This fee is in addition to any fees the Federal awarding agency may assess under the FOIA (5 U.S.C. 552(a)(4)(A)). Intermediate cost objective means a cost objective that is used to accumulate indirect costs or service center costs that are subsequently allocated to one or more indirect cost pools or final cost objectives. See also the definitions of cost objective and final cost objective in this section. Cost objective means a program, function, activity, award, organizational subdivision, contract, or work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, capital projects, etc. A cost objective may be a major function of the non-Federal entity, a particular service or project, a Federal award, or an indirect (Facilities & Administrative (F&A)) cost activity, as described in subpart E of this part.