Notes to SEFA
The accompanying supplementary schedules are presented using the accrual basis of accounting, which is described in Note 1 to the YMCA's consolidated financial statements.
The YMCA has been assigned an indirect cost rate by its cognizant agency; however, the assigned rate is greater than the 10% maximum as allowed by the California Department of Social Services. Accordingly, the indirect costs of the childcare programs do not exceed 10%.
In accordance with the applicable requirements from the Funding Terms & Conditions: Interest expense is only allowable as a reimbursable cost in certain circumstances when it has been preapproved by the administering state department or relates to the lease purchase, acquisition, or repair or renovation of early learning and care facilities owned or leased by the contractor. The YMCA has no interest expense related to the child care and development programs for the year ended June 30, 2025. All expenses claimed for reimbursement under a related party rent transaction must be supported by a fair market rental estimate from an independent appraiser, licensed by the California Office of Real Estate Appraisers. The YMCA has no related party rent expense claimed as a reimbursable expense for the year ended June 30, 2025. Bad debt expense is unallowable unless it relates to uncollected family fees where documentation of adequate collection attempts exists. No bad debt expense was claimed to a child development contract for the year ended June 30, 2025.