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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Serving Our Children has elected not to use the 10% de minimis rate indirect cost rate allowed under the Uniform Guidance.
The schedule of expenditures of federal awards (the Schedule) is presented using the accrual basis of accounting. The schedule of expenditures of federal awards includes cost reimbursable grants from the federal government which, for the year ended September 30, 2024, were primarily from the U.S. Department of Education. This information 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). Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the financial statements. The principal estimates and assumptions used in the preparation of the accompanying schedule relate to cost allowability and allocability (see Note 2). Actual results could differ from those estimates.
Title: Federal Audits
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Serving Our Children has elected not to use the 10% de minimis rate indirect cost rate allowed under the Uniform Guidance.
The allowability of certain costs under government grants is subject to audit by the awarding agency. Certain indirect costs charged to grants are subject to revisions based on government audits of those costs. Management believes that grant costs are consistent with applicable government cost principles, and that costs subsequently disallowed, if any, upon audit by the government would not be material.