Title: NOTE 1: BASIS OF PRESENTATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: SER-Jobs has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the fiscal year ended August 31, 2024. SER-Jobs has a negotiated indirect cost rate with the Department of Labor.
NOTE 1: BASIS OF PRESENTATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying schedule of expenditures of federal awards (the Schedule) presents the federal fund expenditures of all federal award programs of SER-Jobs for Progress of the Texas Gulf Coast, Inc. (SER-Jobs) for the year ended August 31, 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 SER-Jobs, it is not intended to and does not present the financial position, change in net assets, or cash flows of SER-Jobs.
Title: NOTE 3: RECONCILIATION TO FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: SER-Jobs has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the fiscal year ended August 31, 2024. SER-Jobs has a negotiated indirect cost rate with the Department of Labor.
NOTE 3: RECONCILIATION TO FINANCIAL STATEMENTS
The following reconciles the accompanying schedule of expenditures of Federal awards to government fees and grants as reported in the financial statements of the Agency:
total expenidtures of federal awards per accompanying schedule $4,68,0237
Less: refundable advance - City of Houston (191,597)
total federal grant revenue - construction and programs per statement of activities $4,488,640
Title: NOTE 5: INSURANCE COVERAGE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: SER-Jobs has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the fiscal year ended August 31, 2024. SER-Jobs has a negotiated indirect cost rate with the Department of Labor.
NOTE 5: INSURANCE COVERAGE
During the year ended August 31, 2024, SER-Jobs maintained the following types of insurance:
• Umbrella liability - $5,000,000 aggregate.
• Commercial general liability - $3,000,000 general aggregate.
• Automobile liability - $1,000,000 combined single limit.
• Directors and officer liability - $1,000,000 aggregate.
• Cyber security liability - $1,000,000 general aggregate.
• Workers’ compensation- $1,000,000 each accident.
• Accident policy - $500,000 per occurrence.
• Life insurance - $300,000 per occurrence.
• Individual annuities - $250,000 per occurrence.
Title: NOTE 6: LOANS AND LOAN GURANTEES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: SER-Jobs has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the fiscal year ended August 31, 2024. SER-Jobs has a negotiated indirect cost rate with the Department of Labor.
NOTE 6: LOANS AND LOAN GURANTEES
During the year ended August 31, 2024, SER received a commitment from City of Houston for a loan amount of $1,343,307 to construct a Ronald McDonald C.H.E.E.R Room at the SERJobs Workforce Training Center, located at 1960 Tellepsen, Houston, Texas 77023 (the Project). At August 31, 2024, SER has received $191,597 under the agreement. Additional funding is expected throughout the life of the Project.
As part of the loan agreement, the Project shall be used solely for the purpose of constructing a Ronald McDonald C.H.E.E.R Room, which will provide play space to the children while their parents or guardians are receiving services at the SERJobs Workforce Training Center. Under the terms of the agreement, the Project must be used throughout the five year restricted use period at the completion of the construction. Reimbursement on the loan will not be required after the restricted use period ends. In the event of a default, the outstanding principal balance shall be immediately due and payable, with interest at a rate equal to the lesser of 8% per annum or the maximum rate of interest permitted by applicable law.
At August 31, 2024, SER is uncertain about qualifications for forgiveness and, therefore, will delay recognition of the City of Houston loan as contribution revenue until it is forgiven. As of August 31, 2024, City of Houston loan funds are recorded as a refundable advance on the consolidated statements of financial position.
Title: NOTE 7: NONCASH ASSISTANCE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: SER-Jobs has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the fiscal year ended August 31, 2024. SER-Jobs has a negotiated indirect cost rate with the Department of Labor.
NOTE 7: NONCASH ASSISTANCE
SER did not receive any federal noncash assistance for the fiscal year ended August 31, 2024.