Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
The accompanying Schedule of Expenditure of Federal Awards (“the Schedule”) includes the federal award activity of the Fundación under programs of the federal government for the year ended July 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Fundación, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Fundación.
Title: NOTE 2 – SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
The information included in the Schedule may not fully agree with other federal awards reports submitted directly to federal granting agencies or pass-through entities because, among other reasons, the award reports (a) may be prepared for a different fiscal period and (b) may include cumulative (from previous years) data rather the data from the current year only.
Title: NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
Title: NOTE 4 – FEDERAL CFDA NUMBERS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
The CFDA numbers included in this Schedule were determined based on the program name, review of grant contract information and the OMB Catalog of Federal Domestic Assistance (CFDA).
Title: NOTE 5 – PASS-THROUGH AWARDS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
The Fundación is a sub-recipient. A sub-recipient is an entity that expands federal awards that are received from a pass-through entity to carry out the purpose of a federal program. OMB Circular A-133 requires the Schedule to include the name of the pass-through entity and identifying number assigned by the pass-through entity for federal awards received as a sub-recipient. Pass-through numbers identified in the Schedule as N/AV are not available.
Title: NOTE 6 – RESTRICTIONS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
Each Federal Program has its own restrictions. Those restrictions are included in the OMB Catalog of Federal Domestic Assistance (CFDA).
Title: NOTE 7 – MAJOR PROGRAMS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Cost. Also, are identified in this Schedule with an asterisk (*).
Title: NOTE 8 – RELATIONSHIP TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
Total Expenditures of Federal Awards (as per Schedule) $26,667,896
Amounts Not Reported in the Accompaniyng Schedule and Reported in the Statements of Activities:
Add: Depreciation and Amortization 495,267
Add: Matching (In-Kind) Contributions 1,564,022
Add: Other Expenses related to Insurance Claims 748
Less: Federal Expenses Capitalized for Leasehold Improvements 4,302,228
Total Expenditures as per Statements of Activities 24,425,705
Title: NOTE 9 – GENERAL OBJECTIVES PER FEDERAL FINANCIAL AWARDS
Accounting Policies: This Schedule is prepared from the Fundación’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Fundación in accordance with the terms and conditions of the grants, which are consistent with United States Generally Accepted Accounting Principles (GAAP). Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the minimis cost rate.
1. Head Start and Early Head Start Programs (CFDA # 93.600)/Federal Grantor / Pass-Through Grantor/U.S. Department of Health and Human Services / Pass-Through Puerto Rico’s Administration of Children and Families./Objectives/To promote school readiness by enhancing children's cognitive social and emotional development.Head Start and Early Head Start together serve pregnant women and children (birth to 5) and their families, who are under the poverty line or are eligible for public assistance, including federally recognized Indian tribes, Alaska Natives, migrant and seasonal farm workers, homeless children or children in foster care, and children with disabilities.Comprehensive services are provided to enrolled children, pregnant women, and their families, which include health, nutrition, social, and other services determined to be necessary by family needs assessments, in addition to education and cognitive development services. Services are designed to be responsive to each child and family's ethnic, cultural, and linguistic heritage.
2. Head Start Disaster Recovery From Hurricanes Harvey, Irma, and Maria (CFDA #93.356)/Federal Grantor / Pass-Through Grantor/U.S. Department of Health and Human Services / Pass-Through Puerto Rico’s Administration of Children and Families./Objectives/The program provides for Head Start expenses directly related to the consequences of 2017 hurricanes Harvey, Irma and Maria, including making payments under the Head Start Act.
3. Head Start and Early Head Start Coronavirus Aid, Relief and Economic Security Act (CFDA # 93.600)/Federal Grantor / Pass-Through Grantor/U.S. Department of Health and Human Services / Pass-Through Puerto Rico’s Administration of Children and Families./Objectives/To support preventive, preparedness, and responsive activities to coronavirus. Services include providing social and emotional supportive learning environments, consistent daily routines and supporting children in getting up to date on needed medical and other follow up services. Also, supporting parents and prime caregivers return to work and connection to needed services as mental health, parenting and housing.
4. Child and Adult Care Food Program (CFDA # 10.558)/Federal Grantor / Pass-Through Grantor/U.S. Department Agriculture / Pass-Through Puerto Rico’s Department of Education./Objectives/The program assists states, through grants-in-aid and donated foods, to initiate and maintain non-profit food service programs for eligible children and adults in nonresidential day care settings