Notes to SEFA
Title: Note A: Basis of Presentation
Accounting Policies: See Tab 2.
De Minimis Rate Used: N
Rate Explanation: Essence Prep has elected to not use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity
of Essence Prep under programs of the federal government for the year ended June 30, 2024. 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 Essence Prep, it is not intended,
and does not, present the financial position, changes in net assets or cash flows of Essence Prep. Therefore,
some amounts presented in the Schedule may differ from amounts presented in the financial statements.
All of Essence Prep’s federal awards were in the form of cash assistance for the year ended June 30, 2024.
Title: Note B: Summary of Significant Accounting Policies
Accounting Policies: See Tab 2.
De Minimis Rate Used: N
Rate Explanation: Essence Prep has elected to not use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in 2 CFR Part 230, Costs Principles
for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
(2) Essence Prep has elected to not use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.