Title: 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
The amounts reported in the Schedule were obtained from the Agency’s general ledger. Because the Schedule presents only a selected portion of the operations, it is not intended to and does not present the financial positions, 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 Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALN have been appropriately listed by applicable programs. Federal programs with different ALN that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Two clusters were identified in the schedule as follows:
Head Start Cluster
This cluster provides awards to promote school readiness of low-income children (including American Indians, Alaska Natives, and migrant and season farm workers) by enhancing children’s cognitive, social and emotional development.
Social Security/SSI Cluster
This cluster includes awards that provide benefits to disabled wage earners and their families in the event the family wage earner becomes disabled. The Social Security Administration is responsible for administering the Disability Insurance and Supplemental Security Income programs.
Title: 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
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 may be recognized as fixed assets in the Agency’s financial statements and as expenditures in the program financial reports and the Schedule.
Title: 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
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: FACILITIES AND ADMINISTRATIVE COSTS (F&A COSTS)
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
The Agency operates under predetermined fixed indirect cost rates that are effective through September 30, 2023. The base rate for indirect cost recoveries is 14.3% for the year ended September 30, 2023.
Title: 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
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. The Agency does not believe that such disallowance, if any, would have a material effect on its financial position. As of September 30, 2023, there were no material questioned or disallowed costs as a result of grant audits in process or completed.
Title: 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
The Agency did not receive any federal noncash assistance for the fiscal year ended September 30, 2023.
Title: 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
The Agency did not provide federal funds to subrecipients for the year ended September 30, 2023.
Title: 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
The Agency did not have any loans or loan guarantee programs required to be reported on the Schedule for the fiscal year ending September 30, 2023.
Title: 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
The Agency did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ending September 30, 2023.
Title: 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
In the prior year, the Agency incurred $128,240 in expenses which were included in federal expenses for the Child Care Development Block Grant, ALN 93.575, TASCC-4 as reported in the Schedule for the year ended September 20, 2022. In fiscal year 2023, management determined that these expenses qualified as allowable expenses for the Head Start grant 04CH011514-04-01 for the grant year that ended May 31, 2023. This resulted in a reduction in expenses for the Child Care Development Block Grant, ALN 93.575, TASCC-4 for 2023.