Notes to SEFA
Accounting Policies: NOTE A – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state grant activity of Geo-Son Child Care Services, Inc. under programs of the federal state and governments for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Geo-Son Child Care Services, Inc. it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Geo-Son Child Care 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. All of Geo-Son Child Care Services, Inc. s federal and state awards were in the form of cash assistance. Geo-Son Child Care Services, Inc. had no federal or state funded insurance programs or loan guarantees during the year ended December 31, 2023.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE C - INDIRECT COST RATE
The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended December 31, 2023, Geo-Son Child Care Services, Inc. did not elect to use this rate.
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMUS COST RATE