Notes to SEFA
Accounting Policies: NOTE 1:Basis of PresentationThe accompanying schedule of expenditures of federal awards (Schedule) is a supplementary schedule to the Organizations financial statements and is presented for purposes of additional analysis. The Schedule is required by 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 Promise Early Education Center, it is not intended to and does not present the financial position, activities or cash flows of the Organization.The information in the Schedule is presented in accordance with the Uniform Guidance.NOTE 2:Basis of AccountingThe schedule of expenditures of federal awards is presented on the same basis of accounting as the Organizations financial statements. The Organization uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program.NOTE 3:Indirect CostsThe Organization allocates indirect costs based on a federally approved indirect cost allocation method and has elected not to use the 10% de minimus cost rate. NOTE 4:Relationship to Federal Financial ReportsAmounts reported in the accompanying Schedule agree in all material respects with the amounts reported in the related federal financial reports.NOTE 5:Program Costs/Matching ContributionsThe amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the Organizations portion, may be more than shown.NOTE 6:SubrecipientsOf the federal expenditures presented in the Schedule of Expenditures of Federal Awards, the Promise Early Education Center did not provide awards to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.