Title: Note 1—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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Uniform Guidance requires the Schedule to reflect total expenditures for each federal financial assistance program as identified by the federal assistance listing number.
De Minimis Rate Used: Y
Rate Explanation: CentroNía elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of CentroNía, Inc. and Subsidiary (collectively, “CentroNía”) under programs of the federal government for the year ended June 30, 2023. 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 CentroNía, it is not intended to and does not present the consolidated financial position, activities and changes in net assets, or cash flows of CentroNía.
Title: Note 3—Federal programs
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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Uniform Guidance requires the Schedule to reflect total expenditures for each federal financial assistance program as identified by the federal assistance listing number.
De Minimis Rate Used: Y
Rate Explanation: CentroNía elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The following is a description of the federal programs for the year ended June 30, 2023:
Child Care and Development Fund Cluster (federal assistance listing number 93.575)
The Child Care and Development Fund (“CCDF”) provides funds that are used to subsidize child care for low-income
families where the parents are working or attending educational programs, as well as for activities to promote overall child care quality for all children. It is required that all federal child care funds be spent in accordance with the
provisions of the amended Child Care and Development Block Grant program. In order to receive funds, a plan must
be submitted which is effective for a two-year period. CentroNía may operate the CCDF program under a
consolidated United States Public Law. No.102-477 demonstration project, the purpose of which is to provide for the integration of employment, training, and related services to improve the effectiveness of those services.
Head Start (federal assistance listing number 93.600)
The objectives of the Head Start and Early Head Start (collectively, Head Start) programs are to promote school readiness by enhancing children's cognitive social and emotional development. Head Start and Early Head Start together serve pregnant women and children (birth to 5) and their families, who are under the poverty line or are eligible for public assistance, including federally recognized Indian tribes, Alaska Natives, migrant and seasonal farm workers, homeless children or children in foster care, and children with disabilities. Comprehensive services are provided to enrolled children, pregnant women, and their families, which include
health, nutrition, social, and other services determined to be necessary by family needs assessments, in addition to education and cognitive development services. Services are designed to be responsive to each child and family's ethnic, cultural, and linguistic heritage.
Child and Adult Care Food Program (federal assistance listing number 10.558)
Child and Adult Care Food Program assists states, through grants-in-aid and donated foods, to initiate and
maintain non-profit food service programs for eligible children and adults in nonresidential day care settings.
Local Food Promotion Program (federal assistance listing number 10.175)
CentroNía seeks to increase the consumption of local produce by offering affordable catering services to early childhood education (“ECE”) centers in the District of Columbia, including the southeast quadrant. Local producers will have a steady stream of income, and ECE centers an affordable and reliable supply of meals with a local component. An outreach component also entails ServSafe Food Handler Training to community members to prepare early childhood educators and foodservice industry professionals to prevent food sanitation risks and meet regulatory requirements and food safety best practices.
Title: Note 4—Federal loan programs
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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Uniform Guidance requires the Schedule to reflect total expenditures for each federal financial assistance program as identified by the federal assistance listing number.
De Minimis Rate Used: Y
Rate Explanation: CentroNía elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The federal loan program with the DHCD is included in CentroNía’s consolidated financial statements. The loan
commenced in 1999, for the sole purpose for financing hard construction costs relating to an office building located at 1420 Columbia Road, N.W. The federal government did not impose any continuing compliance requirements, and as such, as of the beginning of the audit period, July 1, 2022 is not included within the Schedule. CentroNía drew $1,898,472 of the $1,900,000 that was available. On July 14, 2022, CentroNía paid $1,900,000 to DHCD and recognized a gain on forgiveness of accrued interest in the amount of $1,1194,508.Refer notes to SEFA for Activity relating to the federal loan for the year ended June 30, 2023.