Title: BASIS OF PRESENTATION
Accounting Policies: Basis of Accounting 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. Kids Are First, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. Revenue Reconciliation Federal awards programs reported in Kids Are First, Inc.s financial statements are $9,107,522 for the year ended November 30, 2022. Head Start/Early Head Start $7,398,124, COVID-19 - Head Start/Early Head Start - CARES $124,502, COVID-19 - Head Start/Early Head Start - ARP $98,588, Child and Adult Care Food Program $577,552, Child Care Relief $908,756, Total Grant Revenue per Statement of Activities $ 9,107,522. This grant program is not subject to the annual single audit requirements, so it is not included in the Schedule of Expenditures of Federal Awards. Reconciliation of Federal Expenditures Reported on the Federal SF-425 Quarterly Reports Below is a reconciliation of differences between SEFA and SF-425 Grant Reports for the Head Start/Early Head Start Program for the fiscal year ended November 30, 2022: Federal Expenditures per SEFA$7,398,124, Add: Items in SF-425 not in SEFA $ 90,664 Less: Items in SEFA not in SF-425 $ (252,814) Federal Expenditures per SF-425$ 7,235,974 Match Kids Are First, Inc. identified non-federal matches for the Head Start Program AL #93.600 totaling $1,378,638 for the year ended November 30, 2022. Pertaining to this amount, only $164,635 in donated services, donated supplies, materials, equipment and the usage of facilities from these in-kind contributions are reported on the Statement of Activities. The $164,635 reported consists of allowable donated professional services and goods. The remaining $1,214,003 is not reported in the Statement of Activities, because it does not meet the definition of professional services as defined with accounting principles generally accepted in the United States of America (U.S. GAAP) which only permits the recording of donated time and services for licensed professionals.
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) includes the federal grant activity of Kids Are First, Inc. under programs of the federal governments for the year ended November 30, 2022, for Kids Are First, Inc. 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 Kids Are First, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kids Are First, Inc.