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. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Pinal Gila Community Child Services, Inc. has not elected to use the 10-percent 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 Pinal Gila Community Child Services, Inc. under programs of
the federal government for the year ended July 31, 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 the Pinal Gila Community Child
Services, Inc. it is not intended to and does not present the financial position, changes in
net assets, or cash flows of the Pinal Gila Community Child Services, Inc. Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the
preparation of the basic financial statements.
Title: 2. Summary of signigicant accounting policies
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. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Pinal Gila Community Child Services, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
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. Negative amounts shown on the Schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in
prior years. Pinal Gila Community Child Services, Inc. has not elected to use the 10-
percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 3. Reconciliation to the statement of activities
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. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Pinal Gila Community Child Services, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization draws Head Start funds when expenditures have been incurred and
recognizes revenue and expenses for financial statement presentation on an accrual
basis. Head Start grant awards allow for encumbered spending and such spending does
not qualify for current year expense recognition under accounting principles generally
accepted in the United States of America (US GAAP).
The following schedule reconciles Head Start expenditures for AL #93.600 on a budgetary
basis, as reported on the SF425 Final Financial Status Report and in the schedule of
expenditures of federal awards to Head Start revenue under US GAAP as reported on the
statement of activities:
Head Start revenue per the statement of activities for the
year ended July 31, 2023
$ 12,701,961
Plus encumbrances at July 31, 2023 253,165
Less encumbrances at July 31, 2022 (424,101)
Head Start expenditures per above SEFA $ 12,531,025