Notes to SEFA
The accompanying schedule of expenditures of federal awards presents expenditures for all federal assistance awards that were in effect for the year ended August 31, 2025 for Braination, Inc. and its affiliates (Inspire Academies and Braination Foundation). Braination, Inc.’s and its affiliates’ reporting entity is described in Note 2 of the basic financial statements.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Braination, Inc. and its affiliates (Inspire Academies and Braination Foundation) and is presented on the accrual basis of accounting. 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. Because the schedule presents only a selected portion of the operations of Braination, Inc and its affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Braination, Inc. and its affiliates.
Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations and the Uniform Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
For all federal programs, Braination, Inc. and its affiliates used the net asset classes and codes specified by the Texas Education Agency in the Special Supplement to Financial Accounting and Reporting, Non-Profit Charter School Chart of Accounts. Temporarily restricted net asset codes are used to account for resources restricted to or designated for specific purposes by the grantor. Federal financial assistance is generally accounted for in temporarily restricted net asset codes.
There were no loans or loan guarantees outstanding at year end. Braination, Inc. and affiliates have elected not to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance. Braination, Inc. and its affiliates did not disburse any federal awards to subrecipients for the year ended August 31, 2025.