Notes to SEFA
The schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Literacy Kansas City (the Organization) under programs of the federal government for the year ended June 30, 2025. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Granter and regulatory agencies reserve the right to conduct additional audits of the Organization's grant programs. Such audits may result in disallowed costs to the Organization. However, management does not believe that such audits would result in any disallowed costs that would be material to the Organization's financial position at June 30, 2024.
For the year ended June 30, 2025, indirect administrative costs requested for reimbursement have been limited to 12.18% for the AEL federal funding allocation and 16.81 % for the I ELCE federal funding allocation.
In accordance with Uniform Guidance, major programs for Literacy Kansas City are individual programs or a cluster of programs determined using a risk-based analysis. The threshold for distinguishing Type A and Type B programs was $750,000.