Notes to SEFA
Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule 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.The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE 3 CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERSThe program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education. When there was no federal contract number available, the Schools identification number was utilized.NOTE 4 SUBRECIPIENTSCAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2022.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the 10% de minimis cost rate.