Notes to SEFA
Accounting Policies: Note 1. BASIS OF PRESENTATION:The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activityof Miami Valley Child Development Centers, Inc. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance wherein certain types of expendituresare not allowable or are limited as to reimbursement. In accordance with certain grant awards approved by fundingsources, property and equipment expenditures are charged to expense in the period during which the assets arepurchased instead of being recognized as an asset and depreciated over its useful life for grant reportingpurposes. As a result, the expenses reflected on the Schedule of Expenditures of Federal Awards include the costof property and equipment purchased during the year rather than a provision for depreciation. Therefore, someamounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basicfinancial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.