Notes to SEFA
Title: Note 1 - Basis of Presentation and Significant Accounting Policies
Accounting Policies: Expenditures for federal awards are recognized as incurred using the cost accounting principles contained in the U.S. Office of Management and Budget (OMB) Circular A-122, Cost Principles for Nonprofit Organizations. Under these cost principles, certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of Mile High Kids and Community Development, Inc. (hereafter referred to as MHK) on the accrual basis of accounting for the year ended November 30, 2024. All federal awards received directly and indirectly from federal agencies are included in this Schedule. Because the Schedule presents only a selected portion of the operations of MHK, they are not intended to, and do not, present the financial position, activities, or cash flow in accordance with generally accepted accounting principles. Expenditures for federal awards are recognized as incurred using the cost principles contained in the U.S. Office of Management and Budget (OMB) Circular A-122, Cost Principles for Nonprofit Organizations. Under these cost principles, certain types of expenses are not allowable or are limited as to reimbursement.
Title: Note 2 - Matching Contributions
Accounting Policies: Expenditures for federal awards are recognized as incurred using the cost accounting principles contained in the U.S. Office of Management and Budget (OMB) Circular A-122, Cost Principles for Nonprofit Organizations. Under these cost principles, certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grantees under the Head Start Program, as a matching requirement, are required to receive at least 20% of the costs of the program through cash or in-kind contributions. Contributions described above, also described as non-Federal share, include items recorded as contributions revenue and volunteer services that are not recorded as contributions revenue in the financial statements. In-kind contributions relating to the matching requirements for the year ended November 30, 2024 are as follows:
Title: Note 3 - Indirect Cost Rate
Accounting Policies: Expenditures for federal awards are recognized as incurred using the cost accounting principles contained in the U.S. Office of Management and Budget (OMB) Circular A-122, Cost Principles for Nonprofit Organizations. Under these cost principles, certain types of expenses are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MHK has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.