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 Organization under programs of the federal government for the year ended December 31, 2023. 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
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 Organization’s accounting records and is not intended to present financial position or the results of operations. The financial transactions are recorded by the Organization 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 Organization 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) $1,009,534
Amounts Not Reported in the Accompaniyng Schedule and
Reported in the Statements of Activities:
Add: Depreciation and Amortization 63,538
Add: Other Expenses incurred with Private Funds 239,885
Less: Federal Expenses Capitalized for Property and B22
Equipment (136,323)
Total Expenditures as per Statement of Activities $1,176,634
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. Child Care and Development Block Grant (CFDA # 93.575)/Federal Grantor / Pass-Through Grantor/U.S. Department of Health and Human Services / Pas-Through Puerto Rico’s Administration of Children and Families./Objectives/The Child Care and Development Fund (CCDF) provides funds to states, territories, and Indian tribes (tribes) to increase the availability, affordability, quality of child care services. Funds are used to subsidize child care for low-income families where the parents are working or attending training or educational programs, as well as for activities to promote overall child care quality for all children, regardless of subsidy receipt.Also, the Organization received funds from Child Care Stabilization Fund of the American Rescue Plan Act (ARPA) which provides financial relief to child care providers to help defray unexpected business costs associated with the pandemic, and to help stabilize their operations so that they may continue to provide care. In accordance with the above, during 2023, the Organization received funds from the Labor Assistance Program (PAL) created to allocate resources for the payment of benefits and costs associated with personnel and employees such as bonuses, health insurance plans, and transportation expenses. Also, receives funds from the Operational Incentive Program for Emergecies (PIO) to cover recovery and restoration expenses after Hurricane Fiona.
2. Child and Adult Care Food Program (CFDA # 10.558)/Federal Grantor / Pass-Through Grantor/U.S. Department Agriculture / Pas-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.