Title: Note 3: BASIS OF PRESENTATION
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The accompanying Schedule summarizes the federal expenditures of the Agency under programs of the federal government for the year ended June 30, 2023. The amounts reported as federal grant expenditures were obtained from the Agency’s general ledger. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Agency.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Agency has obtained Assistance Listing (ALN) numbers to ensure that all programs have been identified in the Schedule.
Clusters
Federal programs with different ALN numbers that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Head Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster and the Child Care and Development Block Grant (ALN 93.575) is reported as CCDF Cluster in the Schedule.
Title: Note 4: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following:
- The Agency’s fiscal year end may differ from the program’s year end.
- Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period.
- Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in the Agency’s financial statements and as expenditures in the program financial reports and the Schedule.
Title: Note 5: FEDERAL PASS-THROUGH FUNDS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as “pass-through” are considered direct.
Title: Note 6: CONTINGENCIES
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
Grant monies received and disbursed by the Agency are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Agency does not believe that such disallowance, if any, would have a material effect on the financial position of the Agency. As of June 30, 2023, there were no material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: NONCASH ASSISTANCE
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency did not receive any federal noncash assistance for the fiscal year ended June 30, 2023.
Title: Note 8: SUBRECIPIENTS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency did not provide federal funds to subrecipients for the fiscal year ended June 30, 2023.
Title: Note 9: LOANS AND LOAN GUARANTEES
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency did not have any loans or loan guarantee programs required to be reported on the schedule for the fiscal year ended June 30, 2023.
Title: Note 10: FEDERALLY FUNDED INSURANCE
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ended June 30, 2023.
Title: Note 11: FEDERAL EXPENSES INCURRED FROM A PRIOR YEAR
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Agency’s federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis indirect cost rate for the fiscal year ended June 30, 2023.
The Agency incurred $23,253 of federal expenses in the prior year that is reported on the schedule for the year ended June 30, 2023. These expenses were incurred prior to the Agency’s Project Worksheets being approved for reimbursement by FEMA.