The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Acceso Impact, Inc. and Subsidiaries 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 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 Acceso Impact, Inc. and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Acceso Impact, Inc. and Subsidiaries.
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.
Acceso Impact, Inc. and Subsidiaries has a provisional approval to use an indirect cost rate of 10% for its programs for the period from January 1, 2024 through December 31, 2024. The reimbursement of indirect costs reflected in the accompanying consolidated financial statements is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustments will not be material to Acceso Impact, Inc. and Subsidiaries’ consolidated financial position or change in net assets. Acceso Impact, Inc. and Subsidiaries does not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for Development Innovation Ventures program and a pass-through program from Université Quisqueya.
In January 2025, the United States Agency for International Development (USAID) issued Stop Work notices for five federal award agreements affecting certain Acceso Impact, Inc. subsidiaries following a government-wide review of programs. Although these award agreements were concluded earlier than expected, they represented a limited portion of the Organization’s total operations. Management promptly implemented restructuring measures and reallocated resources to ensure continuity of essential activities and overall organizational stability. The Organization’s Board of Directors approved a revised 2025 budget on February 28, 2025 that removed all 2025 USAID grant revenues from the budget and re-forecasted all 2025 expenses based on the operational restructuring due to the USAID project terminations. The Organization is actively involved in USAID project close-out reimbursement processes and has recovered 99% of projected recoverable expenses to date. The Organization is engaged in negotiations with other organizations to resume the scope of work under the USAID projects. On June 2, 2025, the Organization amended the loan agreement with its Working Capital Facility which includes the lenders: Isenberg Family Charitable Foundation; A to Z Impact Foundation, Inc.; Netri Fundación Privada; and DF Impact Capital, LLC. Under the terms of the amended loan agreement, the lenders agree to increase the senior unsecured, non-revolving loan of $1,200,000 to $1,500,000 and extend the term until January 31, 2027. DF Impact Capital, LLC exited the renewed agreement upon payment in full on June 2, 2025 to pursue higher risk lending, and the remaining lenders each agreed to make an additional equal disbursement of $200,000. As of October 2025, the Organization has received the additional disbursements of $600,000, so the total outstanding loan payable is $1,500,000. On February 19, 2025, the Organization and Epic Gardening, Inc., a Delaware corporation, entered into an Asset Purchase Agreement for the sale of Modern Farmer assets for $70,000, payable in two installments: $14,000 by March 1, 2025, and $56,000 by July 1, 2025. The Organization has evaluated subsequent events occurring after the financial statements date of December 31, 2024 through the date November 17, 2025, except for our report on the Schedule, for which the subsequent events date is December 19, 2025, which is the date the financial statements were available to be issued. No events arose during the period that would require adjustment or additional disclosure.