Notes to SEFA
The Schedule of Expenditures of Federal and State Awards is prepared using the accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance and the Texas Grant Management Standards (TxGMS); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
The Center is the sub-recipient of federal assistance in the form of a forgivable loan that was received and incurred during fiscal year 2024 for a total amount of $1,000,000. This assistance is identified as Community Development Block Grant – PdN Children’s IELC east (“CDBG”) assistance listing number 14.218 in the SEFA and was used for construction of the Inclusive Early Learning Center branch located in east El Paso. The forgiveness of this amount and related recognition of revenue is contingent upon the passage of time and compliance with specific requirements set by the grantor. Therefore, it is presented solely as a forgivable loan in the consolidated statement of financial position. However, beginning of the year outstanding loan balance for CDBG is required to be reported in the SEFA. The following is a reconciliation of total federal grant expenditures reported in the SEFA to total federal grant income reported in the consolidated statement of activities for the year ended August 31, 2025: Federal grant expenditures per SEFA $ 3,744,322 Less CDBG forgivable loan recognized in the consolidated statement of financial position (1,000,000) Total federal grant income per the consolidated statement of activities $ 2,744,322
The SEFA includes a portion of costs associated with general and administrative activities, which is allocated to federal and state assistance programs under negotiated formulas commonly referred to as a negotiated indirect cost rate. Currently, the Center allocates indirect expenses in accordance with an indirect cost rate approved by the Texas Health and Human Services Commission (HHSC). The Organization has not negotiated an indirect rate with its Federal cognizant agency and has elected to use the de minimis rate of 10% of modified total direct cost for Federal awards issued prior to October 1, 2024, and the de minimis rate of 15% of modified total direct cost for Federal awards issued on or after October 1, 2024, as an indirect cost allocation factor, as allowed under 2CFR §200.414, for any Federal awards not otherwise overseen by the HHSC.
Subrecipients – There were no subrecipients of the Federal or State Awards received by Paso del Norte Children’s Development Center for the year ended August 31, 2025.
Paso del Norte Children’s Development Center’s Affiliate, Paso del Norte Children’s Development Center Foundation, did not receive any federal or state awards for the year ended August 31, 2025.