Notes to SEFA
Title: BASIS OF PRESENTATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The SEFA is prepared on the cash basis of accounting. Expenditures are recognized following cost principles contained in the Uniform Guidance. The Academy does not use the 10% de minimis rate. The Academy commingles cash receipts from US Ag Dept with similar State grants and assumes federal monies are expended first.
De Minimis Rate Used: N
Rate Explanation: Only direct costs are charged.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Toledo Preparatory and Fitness Academy (the Academy) under programs of the federal government for the fiscal year ended June 30, 2023 and is prepared in accordance with the cash basis of accounting. The information on this Schedule is prepared 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 the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. Such expenditures are recognized following cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be limited to as to reimbursement.
Title: DE MINIMIS COST RATE
Accounting Policies: The SEFA is prepared on the cash basis of accounting. Expenditures are recognized following cost principles contained in the Uniform Guidance. The Academy does not use the 10% de minimis rate. The Academy commingles cash receipts from US Ag Dept with similar State grants and assumes federal monies are expended first.
De Minimis Rate Used: N
Rate Explanation: Only direct costs are charged.
CFR Section 200.414 of the Uniform Guidance allows a non-federal entity that has never received a negotiated indirect cost rate to charge a de minimis rate of 10% of modified total direct costs to indirect costs. The Academy has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: CHILD NUTRITION CLUSTER
Accounting Policies: The SEFA is prepared on the cash basis of accounting. Expenditures are recognized following cost principles contained in the Uniform Guidance. The Academy does not use the 10% de minimis rate. The Academy commingles cash receipts from US Ag Dept with similar State grants and assumes federal monies are expended first.
De Minimis Rate Used: N
Rate Explanation: Only direct costs are charged.
The Academy commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the Academy assumes it expends federal monies first.