Title: Federal Funds Passed-through to Sub-reciepients
Accounting Policies: The OrganizationFood for Kids, Inc. (the Organization), a Texas nonprofit corporation, was incorporated on August 2, 1989, to serve as a sponsoring entity to day care centers and day care homes providing nutritious meals for eligible children in nonresidential day care centers and day care homes under the Child and Adult Care Food Program (CACFP). CACFP is federally funded through the United States Department of Agriculture (USDA). CACFP is managed in the State of Texas by the Texas Department of Agriculture (TDA).As a sponsoring entity, the Organization assumes administrative and financial responsibility for CACFP operations in day care centers and day care homes under its sponsorship.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
These represent a portion of the total funds received from USDA that the Organization, as a sponsoring entity, disbursed to day care centers and day care homes under its sponsorship during the year ended September 30, 2022. The Organization disbursed approximately $191,525 and $1,524,577 to day care homes and day care centers, respectively, in the year ended September 30, 2022.
Title: Administrative Fee Reimbursements - Day Care Centers
Accounting Policies: The OrganizationFood for Kids, Inc. (the Organization), a Texas nonprofit corporation, was incorporated on August 2, 1989, to serve as a sponsoring entity to day care centers and day care homes providing nutritious meals for eligible children in nonresidential day care centers and day care homes under the Child and Adult Care Food Program (CACFP). CACFP is federally funded through the United States Department of Agriculture (USDA). CACFP is managed in the State of Texas by the Texas Department of Agriculture (TDA).As a sponsoring entity, the Organization assumes administrative and financial responsibility for CACFP operations in day care centers and day care homes under its sponsorship.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization is allowed under Title 7 Code of Federal Regulations (CFR) Part 226, Child and Adult Care Food Program, Sections 226.6(f)(1)(vi) and 226.16(b)(1) to receive up to fifteen percent (15%) of meal reimbursement payments to day care centers to pay for its actual allowable administrative costs. In addition, Food and Nutrition Services (FNS). Instruction 796-2, Rev. 4, Financial Management, Child and Adult CareFood Program, does not permit a sponsoring organization to receive administrative cost reimbursements in excess of the actual allowable administrative costs incurred for sponsoring day care centers in a fiscal year. The organization retained approximately $249,347 for administrative costs from meal reimbursement payments to day care centers it sponsored and incurred approximately $257,634 in allowable administrative cost for CACFP during the year ended September 30, 2022.
Title: Administrative Fee Reimbursements - Day Care Homes
Accounting Policies: The OrganizationFood for Kids, Inc. (the Organization), a Texas nonprofit corporation, was incorporated on August 2, 1989, to serve as a sponsoring entity to day care centers and day care homes providing nutritious meals for eligible children in nonresidential day care centers and day care homes under the Child and Adult Care Food Program (CACFP). CACFP is federally funded through the United States Department of Agriculture (USDA). CACFP is managed in the State of Texas by the Texas Department of Agriculture (TDA).As a sponsoring entity, the Organization assumes administrative and financial responsibility for CACFP operations in day care centers and day care homes under its sponsorship.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under Title 7 Code of Federal Regulations (CFR) Part 226, Child and Adult Care Food Program, Section 226.12(a), the Organization is allowed to receive monthly administrative cost reimbursement determined by multiplying the number of operating homes submitting reimbursement claims through the Organization in a month by the monthly reimbursement rate per home approved by USDA for the program year.The Organization is allowed under Title 7 Code of Federal Regulations (CFR) Part 226, Child and Adult Care Food Program, Section 226.12(a), to carry over to the next fiscal year a maximum of 10 percent of administrative reimbursements earned but not used in the current fiscal year. Any unspent administrative funds over and above the 10 percent limit must be returned to the federal government through the State passthrough agency.The Organization received approximately $38,444 in administrative cost reimbursements for the year ended September 30, 2022. Actual administrative cost for the year ended September 30, 2022, was $45,102.
Title: Contingencies
Accounting Policies: The OrganizationFood for Kids, Inc. (the Organization), a Texas nonprofit corporation, was incorporated on August 2, 1989, to serve as a sponsoring entity to day care centers and day care homes providing nutritious meals for eligible children in nonresidential day care centers and day care homes under the Child and Adult Care Food Program (CACFP). CACFP is federally funded through the United States Department of Agriculture (USDA). CACFP is managed in the State of Texas by the Texas Department of Agriculture (TDA).As a sponsoring entity, the Organization assumes administrative and financial responsibility for CACFP operations in day care centers and day care homes under its sponsorship.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The grant from USDA requires fulfilment of certain terms and conditions as set forth in the grant contracts and are subject to reviews and audits by USDA and/or TDA during and after the duration of the contract. Such reviews and audits could result in the discovery of unallowable activities and unallowable costs. Consequently, USDA and TDA,may at their discretion, request reimbursement for expenses or return of funds as a result of noncompliance by the Organization with contract terms and program regulations and requirements. Management believes that the Organization is in substantial compliance with program provisions and requirements and that disallowed costs, if any, will not be material to the amounts and disclosures in the Schedule.
Title: Subsequent Events
Accounting Policies: The OrganizationFood for Kids, Inc. (the Organization), a Texas nonprofit corporation, was incorporated on August 2, 1989, to serve as a sponsoring entity to day care centers and day care homes providing nutritious meals for eligible children in nonresidential day care centers and day care homes under the Child and Adult Care Food Program (CACFP). CACFP is federally funded through the United States Department of Agriculture (USDA). CACFP is managed in the State of Texas by the Texas Department of Agriculture (TDA).As a sponsoring entity, the Organization assumes administrative and financial responsibility for CACFP operations in day care centers and day care homes under its sponsorship.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Management evaluated subsequent events through June 19, 2023, which is the date the financial statement, comprised of the Schedule and related notes, was available to be issued, and concluded that no material subsequent event had occurred that would require recognition or disclosure in the financial statement.