Notes to SEFA
Title: Basis of presentation:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Child-Parent Centers, Inc. (the Organization) under programs of the federal government for the year ended August 31, 2024. The information in the 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 Child-Parent Centers, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Summary of significant accounting policies:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Organization has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Federal Assistance Listing Numbers (ALN):
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The program titles and ALN or federal identification numbers were obtained from the federal or pass-through grantor or the update to the Catalog of Federal Domestic Assistance.
Title: Reconciliation to budgetary basis:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization draws Head Start funds when expenditures have been incurred and recognizes revenue and expenses for financial statement presentation on an accrual basis. Head Start grant awards allow for encumbered spending and such spending does not qualify for current year expense recognition under accounting principles generally accepted in the United States of America (GAAP). Therefore, the Head Start expenditures reported on the SF425 Final Financial Status Reports will differ from the Head Start expenditures under GAAP due to the encumbrances.