Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activities of The Pepin Academies, Inc. (“Pepin”). 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 Pepin, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Pepin. 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.
Pepin has elected not to use the 10% de minimis rate of Modified Total Direct Costs allowed by the Uniform Guidance, per the terms of the original grants issued prior to October 1, 2024. The 2024 Uniform Guidance revisions, including the updated “up to 15%” de minimis rate, is not applicable to these awards unless they are formally amended to adopt the revisions.
Expenditures incurred by Pepin are subject to audit and possible disallowance by federal agencies. Management believes that, if audited, an adjustment for disallowed expenses would be immaterial.