Notes to SEFA
Title: A - BASIS FOR PRESENTATION
Accounting Policies: The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimus indirect cost rate.
The schedule of expenditures of federal awards (the Schedule) presents the activity of all federal
award programs of Mountainland Head Start, Inc. (the Organization). The Organization is defined
in Note 1 to the Organization’s financial statements. All federal awards received directly from
federal agencies as well as federal awards passed through from other government agencies are
included on the Schedule.
Title: B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimus indirect cost rate.
The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
The Organization has not elected to use the 10-percent de minimus indirect cost rate.
Title: C - SUBRECIPIENTS OF FEDERAL AWARD PROGRAMS
Accounting Policies: The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimus indirect cost rate.
The Organization did not provide federal award funding to any subrecipient during the year ended
April 30, 2023.
Title: D - RELATIONSHIP TO FINANCIAL STATEMENTS
Accounting Policies: The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimus indirect cost rate.
See the notes to the SEFA for chart/table
Title: E - ADJUSTMENT TO BUDGETARY BASIS
Accounting Policies: The Schedule is presented using the accrual basis of accounting (GAAP).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the 10-percent de minimus indirect cost rate.
The Organization establishes its budget on a basis different from actual activity, which is reported on a generally accepted accounting principle (GAAP) basis. Purchase orders and commitments
outstanding at April 30 using grant monies are recorded as current year expenditures. Purchases of capital assets are recorded as expenditures. In addition, service hours donated by parents are
measured and recorded. Accordingly, actual activity is converted to the budgetary basis on the Schedules of Revenues and Expenditures - Budget and Actual for comparison purposes.