Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.
De Minimis Rate Used: N
Rate Explanation: Auditee did not elect to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.
De Minimis Rate Used: N
Rate Explanation: Auditee did not elect to use the 10% de minimis cost rate.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Title: NOTE 3 – INDIRECT COST RATE
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.
De Minimis Rate Used: N
Rate Explanation: Auditee did not elect to use the 10% de minimis cost rate.
The Organization has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the year ended December 31, 2023.
Title: NOTE 4 – RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRANT AWARDING AGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.
De Minimis Rate Used: N
Rate Explanation: Auditee did not elect to use the 10% de minimis cost rate.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Title: NOTE 5 – CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Houston Business Development, Inc. (“HBDi” or the “Organization”) under programs of the federal governments for the year ended December 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 Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the federal Uniform Guidance, wherein certain types of expenditures are not allowable or are limited by the award contract. Federal grant funds are considered earned to the extent of qualifying expenditures made under the provisions of the grants. When such funds are advanced to HBDi, they are recorded as refundable advances until earned. Otherwise, federal grant funds are received on a cost reimbursement basis from the federal program pass-through entities.
Expenditures included on the Schedule may differ from amounts reflected in the financial reports submitted to the grant awarding or pass-through entities because of the following reasons:
1. Program administration fees received by HBDi from the grant awarding agency may not have been included in the program financial reports submitted to the awarding agency even though included as part of program expenses on the Schedule.
2. Differences may exist between grant periods and HBDi’s accounting period.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.
De Minimis Rate Used: N
Rate Explanation: Auditee did not elect to use the 10% de minimis cost rate.
Federal grants require the fulfillment of certain conditions set forth in grant agreements, and may be regularly monitored and reviewed by grantors, both during and after the programs. Failure to satisfy the requirements of contract agreements could result in disallowed costs and return of funds to grantors.