Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Youth Development, Inc. (YDI) under programs of the federal government for the year ended June 30, 2025. Because the Schedule presents only a selected portion of the operations of YDI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of YDI.
During fiscal years 2024 and 2025, YDI was the recipient of child care stabilization grants totaling $2 million. The State of New Mexico Early Childhood Education and Care Department (ECECD) was allocated COVID-19 pandemic relief funding from the federal government for these stabilization grants to ensure child care providers remain open and child care is available for all families. This has included administering funding received via the American Rescue Plan Act (ARPA) Child Care Stabilization Funds to invest in New Mexico’s child care system. According to the OMB Compliance Supplement, child care stabilization funds included in ARPA are for the benefit of qualified child care providers and are considered payments made to beneficiaries of a federal program. Qualified providers, which includes YDI’s Head Start centers, receiving ARPA stabilization funds are therefore not categorized as “subrecipients” as defined at 45 CFR 75.2 but instead as beneficiaries. As a result, YDI has not included the expenditure of these child care stabilization grants as federal awards expended in the Schedule.