Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “SEFA”) includes federal grant activity of the Academy of Accelerated Learning, Inc. (“the Academy”) under programs of the federal government for the year ended August 31, 2025. The information in the 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 the Academy, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Academy.
Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The SEFA is presented on the accrual basis of accounting consistent with Note 1 to the financial statements. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extend 30 days beyond the federal project period ending date, in accordance with provisions in the Office of Management and Budget Compliance Supplement.
Amounts reflected in the financial reports filed with grantor agencies for the federal programs and the SEFA schedule may not agree because of accruals which would be included in the next report filed with the grantor agencies, matching requirements not included in the Schedule and due to different program year ends.
The Academy has elected not to utilize the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Academy’s federal programs are subject to review and audit by grantor agencies. Consequently, the Academy may become liable to refund money to grantor agencies where it fails to comply with contractual provisions. In addition, the Academy may not fully collect federal grant receivables as of August 31, 2025, related to the reported federal grant expenditures as these receivables may be subject to the grantors’ compliance approval process. Management believes that the results of these reviews and audits will not have a material effect on the amounts reported in the Schedule.