Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures 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, where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts represent adjustments to prior year results.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Kinexus Group and Subsidiaries under programs of the federal government 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 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 Kinexus Group and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kinexus Group and Subsidiaries.
Title: Reconciliation to Financial Statements
Accounting Policies: Expenditures 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, where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts represent adjustments to prior year results.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Total federal grant revenue per the consolidated financial statements equal total federal expenditures per the Schedule.
Title: Subrecipients
Accounting Policies: Expenditures 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, where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts represent adjustments to prior year results.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Kinexus Group and Subsidiaries administers certain federal awards programs through subrecipients as identified on the Schedule. Those subrecipients are not considered part of the Kinexus Group and Subsidiaries reporting entity.
Title: WIOA Cluster Grants
Accounting Policies: Expenditures 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, where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts represent adjustments to prior year results.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Kinexus Group and Subsidiaries receives several grants for WIOA Statewide Activities and Local Administration. These grants are funded by a combination of Assistance Listing numbers including 17.258, 17.259, and 17.278 which are all required to be clustered together. The Assistance Listing Number split for these particular grants is determined at the state level each year. For current year spending, the splits are as follows: 17.258 32.4%, 17.259 35.1%, 17.278 32.5%.