Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to American Leadership Acadamy ("the school")'s financial statements and is presented for the purpose of additional analysis. Because the schedule presents only a selected portion of the activities of the School, it is not inteded to, and does not present financial position, changes in fund balances, or the current funds, revenue, expenditure, and other changes of the School.
Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal awards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards unclude direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those pregrams which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2025. Basis of Accounting The expendiures in the schedule are recognized as incurred based on the modified accrual basis of accounting and the cost accounting principles contained in the Uniform Guidance, Cost Principles for State and Local Governments. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Non-Cash Assistance The School did not receive any non-cash assistance for the year ended June 30, 2025. De Minimis Indirect Cost Rate The School has elected not to use the 10% de minimis indirect cost rate.