Notes to SEFA
Title: 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.
De Minimis Rate Used: N
Rate Explanation: Rising Ground has a provisional approval to use an indirect cost rate of 20.30% for Head Start, 21.80% for the Continuum of Care Program and the Unaccompanied Alien Children Program, and 13.37% for all other programs for the year ended June 30, 2023.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Rising Ground, Inc. and Affiliates (Rising Ground) 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 Rising Ground, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rising Ground.
Title: 4. Federal Percentage
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.
De Minimis Rate Used: N
Rate Explanation: Rising Ground has a provisional approval to use an indirect cost rate of 20.30% for Head Start, 21.80% for the Continuum of Care Program and the Unaccompanied Alien Children Program, and 13.37% for all other programs for the year ended June 30, 2023.
For Federal Assistance Listing Number’s (ALN’s) 93.558 and 93.667, the funder (New York City Human Resources Administration) has notified Rising Ground that they will not know the federal vs. state funding percentages for fiscal year (FY) 2023 until late calendar year 2024 once the contract is final closed. Therefore, Rising Ground used the last confirmed funding rate of 47.81% and 34.87% for 93.558 and 93.667, respectively, which is based on the latest available confirmed federal percentage funding from the New York City Human Resources Administration. Any changes as a result of the final federal funding percentage will be shown as an additional positive or negative amount reported as expenditures in the subsequent year.
Title: 5. Subsequent Events
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.
De Minimis Rate Used: N
Rate Explanation: Rising Ground has a provisional approval to use an indirect cost rate of 20.30% for Head Start, 21.80% for the Continuum of Care Program and the Unaccompanied Alien Children Program, and 13.37% for all other programs for the year ended June 30, 2023.
Rising Ground has evaluated subsequent events occurring after the consolidated financial statements date of June 30, 2023 through December 1, 2023, except for the report on the Schedule, for which the subsequent events date is March 28, 2024, which is the date these consolidated financial statements were available to be issued. No events arose during the period that would require adjustments or additional disclosures.