Title: GENERAL INFORMATION
Accounting Policies: The accompanying schedule of expenditures of federal and city awards is presented using the accrual
basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial
reports submitted to federal, state and other funding agencies due to those reports being submitted on
either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: Nueva Esperanza, Inc. has made an election pursuant to 2 CFR Part 200 Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 40.2% indirect cost
rate. This is the provisional approved indirect rate Nueva Esperanza, Inc. has through the Department of
Health and Human Services (“DHHS”) through June 30, 2024. Nueva Esperanza, Inc. has applied for a
provisional rate of 34.80% for award periods beginning after June 30, 2022. The rate charged on contracts
will not exceed this rate.
The accompanying schedule of expenditures of federal and city awards presents the activities in all the
federal financial assistance programs of Nueva Esperanza, Inc. (“NEI”). Financial assistance received
directly as well as financial assistance passed through other governmental agencies or not-for-profit
organizations are included on the schedule. 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”) and the
City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of
the operations of NEI, it is not intended to and does not present the financial position, changes in net
assets, or cash flows of NEI.
Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE
Accounting Policies: The accompanying schedule of expenditures of federal and city awards is presented using the accrual
basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial
reports submitted to federal, state and other funding agencies due to those reports being submitted on
either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: Nueva Esperanza, Inc. has made an election pursuant to 2 CFR Part 200 Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 40.2% indirect cost
rate. This is the provisional approved indirect rate Nueva Esperanza, Inc. has through the Department of
Health and Human Services (“DHHS”) through June 30, 2024. Nueva Esperanza, Inc. has applied for a
provisional rate of 34.80% for award periods beginning after June 30, 2022. The rate charged on contracts
will not exceed this rate.
The consolidated financial statements of Nueva Esperanza, Inc. include the accounts and activities of
Nueva Esperanza, Inc. and its affiliated entities (the “Organization”). The federal and city award
expenditures for three of the Organization’s affiliated entities, Esperanza Academy Charter School,
Esperanza Cyber Charter School and Eastern North Philadelphia Workforce Development Corporation in
the amounts of $11,250,050, $4,280,839 and $5,509,283, respectively, have not been included in the
accompanying schedule of expenditures of federal and city awards for the year ended June 30, 2024.
Esperanza Academy Charter School, Esperanza Cyber Charter School and Eastern North Philadelphia
Workforce Development Corporation’s federal and city expenditures have been included in Esperanza
Academy Charter School, Esperanza Cyber Charter School and Eastern North Philadelphia Workforce
Development Corporation’s schedule of expenditures of federal and city awards, which is included in its
separate Uniform Guidance single audit for the year ended June 30, 2024 under Employer Identification
Number 23-2853988, 45-5472199 and 23-2978010, respectively.