Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) reflects the federal grant activity of La Isla Network, Inc. (LIN) for the year ended December 31, 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 LIN, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of LIN.
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.
La Isla Network, Inc. has elected to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.
The requirements of the Uniform Guidance require all major programs, as determined by the auditor on a risk-based approach, be subject to specific control and/or compliance testing. In determining that at least 40% of federal expenditures were tested in accordance with single audit requirements, the following calculation was made: Amount $ 3,091,813 40% $ 1,236,725 Programs Selected for Testing 17.401 International Labor Programs $ 2,272,294 19.019 International Programs to Combat Human Trafficking 819,519 Total Programs Selected for Testing $ 3,091,813 Percent of Total Federal Expenditures Tested 100%