Notes to SEFA
Title: Note 1 Summary of Significant Accounting Policies
Accounting Policies: Note 1. Summary of Significant Accounting Policies
Basis of Presentation – The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared from the Program’s accounting records and is presented according to the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance.
Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the activities of the Program, it is not intended to and does not present either the financial position or changes in net assets of the Program.
Basis of Accounting – 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.
Revenue Recognition
Federal revenues – Federal revenues consist of revenues from cost-imbursement contracts that are recognized as expenditures are incurred.
Accounts Receivable – Accounts receivable is primarily comprised of reimbursements due from contracted services pursuant to contractual agreements. The allowance for doubtful accounts balance represents management’s estimate of uncollectible accounts based upon historical information. At September 30, 2023, the Program has determined that no allowance is necessary.
Indirect Cost Rate – The Program elected not to use the 10% de minimis cost rate as allowed under the Uniform Guidance.
Subsequent Events – Subsequent events are events or transactions that occur after the statement of financial position date but before financial statements are available to be issued. The Program recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at that date, including the estimates inherent in the process of preparing financial statements. The Program’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial position, but arose after that date and before the financial statements are available to be issued.
The Program has evaluated subsequent events through March 25, 2024, which is the date the financial statements are available for issuance, and concluded that there are no events or transactions that need to be disclosed.
Note 2. General Information
The Program is part of the Child Nutrition Program of Southern California Inc. (the Organization). The Organization was incorporated as a non-profit corporation on February 18, 1981, to provide reimbursement to day care home providers, who provide children with meals which meet certain nutrition guidelines. The Organization has been granted tax exempt status by the Internal Revenue Service under Section 501(c)(3) and the California Franchise Tax Board under Section 23701(d). This report includes an opinion only on the activity of the Program. The source of funding for the Program is the United States Department of Agriculture and the California Department of Education.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the deminimis cost rate.
Basis of Presentation – The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared from the Program’s accounting records and is presented according to the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance.
Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the activities of the Program, it is not intended to and does not present either the financial position or changes in net assets of the Program.
Basis of Accounting – 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.
Revenue Recognition
Federal revenues – Federal revenues consist of revenues from cost-imbursement contracts that are recognized as expenditures are incurred.
Accounts Receivable – Accounts receivable is primarily comprised of reimbursements due from contracted services pursuant to contractual agreements. The allowance for doubtful accounts balance represents management’s estimate of uncollectible accounts based upon historical information. At September 30, 2023, the Program has determined that no allowance is necessary.
Indirect Cost Rate – The Program elected not to use the 10% de minimis cost rate as allowed under the Uniform Guidance.
Subsequent Events – Subsequent events are events or transactions that occur after the statement of financial position date but before financial statements are available to be issued. The Program recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at that date, including the estimates inherent in the process of preparing financial statements. The Program’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial position, but arose after that date and before the financial statements are available to be issued.
The Program has evaluated subsequent events through March 25, 2024, which is the date the financial statements are available for issuance, and concluded that there are no events or transactions that need to be disclosed.
Title: Note 2 General Information
Accounting Policies: Note 1. Summary of Significant Accounting Policies
Basis of Presentation – The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared from the Program’s accounting records and is presented according to the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance.
Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the activities of the Program, it is not intended to and does not present either the financial position or changes in net assets of the Program.
Basis of Accounting – 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.
Revenue Recognition
Federal revenues – Federal revenues consist of revenues from cost-imbursement contracts that are recognized as expenditures are incurred.
Accounts Receivable – Accounts receivable is primarily comprised of reimbursements due from contracted services pursuant to contractual agreements. The allowance for doubtful accounts balance represents management’s estimate of uncollectible accounts based upon historical information. At September 30, 2023, the Program has determined that no allowance is necessary.
Indirect Cost Rate – The Program elected not to use the 10% de minimis cost rate as allowed under the Uniform Guidance.
Subsequent Events – Subsequent events are events or transactions that occur after the statement of financial position date but before financial statements are available to be issued. The Program recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at that date, including the estimates inherent in the process of preparing financial statements. The Program’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial position, but arose after that date and before the financial statements are available to be issued.
The Program has evaluated subsequent events through March 25, 2024, which is the date the financial statements are available for issuance, and concluded that there are no events or transactions that need to be disclosed.
Note 2. General Information
The Program is part of the Child Nutrition Program of Southern California Inc. (the Organization). The Organization was incorporated as a non-profit corporation on February 18, 1981, to provide reimbursement to day care home providers, who provide children with meals which meet certain nutrition guidelines. The Organization has been granted tax exempt status by the Internal Revenue Service under Section 501(c)(3) and the California Franchise Tax Board under Section 23701(d). This report includes an opinion only on the activity of the Program. The source of funding for the Program is the United States Department of Agriculture and the California Department of Education.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the deminimis cost rate.
The Program is part of the Child Nutrition Program of Southern California Inc. (the Organization). The Organization was incorporated as a non-profit corporation on February 18, 1981, to provide reimbursement to day care home providers, who provide children with meals which meet certain nutrition guidelines. The Organization has been granted tax exempt status by the Internal Revenue Service under Section 501(c)(3) and the California Franchise Tax Board under Section 23701(d). This report includes an opinion only on the activity of the Program. The source of funding for the Program is the United States Department of Agriculture and the California Department of Education.