The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activities of Christian Military Academy, Inc. (the Academy) under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of the 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 Christian Military Academy, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Christian Military Academy, Inc.
Expenditures reported in 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 allowed or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Additional policies are the following: (a) The financial transactions are recorded by the Academy in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. (b) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
The assistance listing numbers included in the Schedule are determined based on the program’s name, review of grant contract information and the Office of Management and Budget. The assistance listing number is a program identification number, whose first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Major programs are identified in the Summary of Audits Results Section of the Schedules of Findings and Questioned Cost.
2 CFR 200.17 defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, Child Nutrition and Head Start were deemed to be a cluster of programs and were tested accordingly.
The dollar threshold for Type A and Type B programs amounted to $750,000.
In-kind and matching expenses are non-federal share of certain program costs, therefore are not included in the accompanying Schedule.
The Academy does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414.
During prior fiscal years, the Academy incurred costs related to different PWs under the Federal Emergency Management Agency (FEMA) Public Assistance program (CFDA #97.036). These costs were incurred for the disaster recovery efforts, and lease in response to Hurricane María. On the other hand, during 2024 the Academy was approved to receive funds under the Community Development Block Grant - Disaster Recovery (CDBG-DR) program (CFDA #14.228). These CDBG-DR funds were awarded to reimburse the 10% matching costs required under the FEMA Public Assistance program for the same project. The total amount of CDBG-DR funds received to reimburse these matching costs during 2024 amounted to $4,612, and this amount is reported in the SEFA for the current fiscal year. Although the expenditures were incurred in prior fiscal years, the CDBG-DR funds were formally approved during 2024. Therefore, the costs associated with this project are reported on the Schedule of Expenditures of Federal Awards (SEFA. Management has evaluated the recognition of these costs in the SEFA based on the timing of CDBG-DR funds approval. In accordance with Federal grant reporting requirements, the expenditures incurred in the prior year have been included in the SEFA, reflecting the period in which the Federal funds became eligible for reimbursement.
The accompanying Schedule of Expenditures of Federal Awards includes noncash assistance consisting of USDA-donated commodities with a fair value of $22,201 received and consumed during the year, as reported by the Puerto Rico Department of Education, School Food Authority. The amount reported represents the fair value of commodities used in the program. Any remaining balance of commodities on hand at year-end is not included as federal expenditures.