Notes to SEFA
Title: A. 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: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance. The Organization has elected to use the provisional indirect cost rate which is approved by the the U.S.
Department of Health and Human Services (the Department) for grants from the Department.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of
the Organization under programs of the federal government for the year ended September 30, 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 the Organization, it
is not intended to and does not present the financial position, changes in net position, or cash flows of the
Organization.
Title: B. 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. 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: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance. The Organization has elected to use the provisional indirect cost rate which is approved by the the U.S.
Department of Health and Human Services (the Department) for grants from the Department.
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.
Title: C. Indirect Cost Rate
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: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance. The Organization has elected to use the provisional indirect cost rate which is approved by the the U.S.
Department of Health and Human Services (the Department) for grants from the Department.
The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance. The Organization has elected to use the provisional indirect cost rate which is approved by the the U.S.
Department of Health and Human Services (the Department) for grants from the Department.
Title: D. Head Start Activity
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: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance. The Organization has elected to use the provisional indirect cost rate which is approved by the the U.S.
Department of Health and Human Services (the Department) for grants from the Department.
The accompanying schedule of expenditures of federal awards includes Head Start activity, which is presented on the
accrual basis of accounting. Although the Head Start grant is from May 1 to April 30, Head Start allows
encumbrances for respective reporting periods. Accordingly, certain expenditures as defined by grant awards may
differ from accrual based accounting. The following is a reconciliation between the schedule of expenditures of
federal awards and the SF-425 as submitted to the grantor agency.
Grants for the period 5/1/24 through 9/30/24
Federal Expenditures per 9/30/24 audit $ 1,769,742
Encumbrances at 9/30/24 representing FY 24/25 Federal Expenditures (unaudited) 520,748
$ 2,290,490
Grants for the period 5/1/23 through 9/30/23
Federal Expenditures per 9/30/23 audit $ 1,865,533
Encumbrances at 9/30/23 representing FY 23/24 Federal Expenditures (unaudited) 295,731
$ 2,161,264