Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: The accompanying schedules of expenditures of federal and state awards included the federal and state grant activity of the Organization and are presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization uses the modified total cost method to allocate expenses to the program.
The accompanying schedules of expenditures of federal and state awards includes the federal and
state grant activity of Morningstar Children and Family Services, Inc. (“the Organization”) under
programs of the federal government and State of Georgia 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. Because the schedules present only a selected portion of
the operations of the Organization, it is not intended and does not present the financial position,
changes in net assets, or cash flows of the Organization.
Title: Note B - Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedules of expenditures of federal and state awards included the federal and state grant activity of the Organization and are presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization uses the modified total cost method to allocate expenses to the program.
The accompanying schedules of expenditures of federal and state awards include the federal and
state grant activity of the Organization and are presented on the accrual basis of accounting.
The Organization uses the modified total cost method to allocate expenses to the program.
Title: Note C - Fee for Service Revenue
Accounting Policies: The accompanying schedules of expenditures of federal and state awards included the federal and state grant activity of the Organization and are presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization uses the modified total cost method to allocate expenses to the program.
The Organization contracts with the Georgia state agencies, listed in the schedule of expenditures
of federal and state awards, on a fee for service basis. Therefore, expenditures shown in the
schedules reflect fees earned under the contracts and not monies expended under a grant program.
Title: Note D - Unearned Revenue
Accounting Policies: The accompanying schedules of expenditures of federal and state awards included the federal and state grant activity of the Organization and are presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization uses the modified total cost method to allocate expenses to the program.
Federal revenues received but not earned during the year for 93.658 Foster Care Title IV-E totaled
$23,907. Unearned revenue balances were $23,907 and $0 for years ended June 30, 2024, and
2023, respectively. Amounts will be presented on the SEFA in future years when earned and
expended.