Notes to SEFA
Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in Connect’s financial statements in conformity with generally accepted accounting principles. Connect has not elected to use the 10% de minimis cost rate for indirect costs and does not charge indirect costs to its federal grants. Connect does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Connect, it is not intended to and does not present the financial position, changes in net assets or cash flows of Connect.
De Minimis Rate Used: N
Rate Explanation: The Auditee has not elected to use the 10% de minimis cost rate for indirect costs.
Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in Connect’s financial statements in conformity with generally accepted accounting principles. Connect has not elected to use the 10% de minimis cost rate for indirect costs and does not charge indirect costs to its federal grants. Connect does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Connect, it is not intended to and does not present the financial position, changes in net assets or cash flows of Connect.
Title: NOTE 2 – U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in Connect’s financial statements in conformity with generally accepted accounting principles. Connect has not elected to use the 10% de minimis cost rate for indirect costs and does not charge indirect costs to its federal grants. Connect does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Connect, it is not intended to and does not present the financial position, changes in net assets or cash flows of Connect.
De Minimis Rate Used: N
Rate Explanation: The Auditee has not elected to use the 10% de minimis cost rate for indirect costs.
In September 2022, Connect received a U. S. Department of Housing and Urban Development loan funded by a Community Development Block Grant passed through the City of Houston (the City). The balance of the outstanding forgivable loan at December 31, 2024 of $10,710,000, represents the actual draws paid by the City and is reported in the schedule of expenditures of federal awards as such. Requests for expenditures incurred, but which funds have not yet been received from the City, are not reflected in the Schedule of Expenditures of Federal Awards.