Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) for the year ended June 30, 2025 includes the federal award activity of the Department of Education (the “DOE”), the Hawaii State Public Library System (the “HSPLS”), and certain Hawaii State Public Charter Schools (the “HSPCS”) where the DOE prepares the Schedule, based on information provided by HSPLS and HSPCS, to combine federal financial data for the three departments, in aggregate known as the Department. 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 the Department, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Department. The following is a summary of the HSPCS entities that obtained separate audits performed in accordance with the Uniform Guidance, including separate Uniform Guidance submissions to the Federal Audit Clearinghouse: Connections Public Charter School Hawaiʻi Academy of Arts and Science Public Charter School Ka Waihona O Ka Na‘auao Public Charter School Kanu O Ka ‘Āina New Century Public Charter School State Public Charter School Commission Awards listed in these separately issued Uniform Guidance submissions, with federal expenditures aggregating to approximately $5,791,000 for the year ended June 30, 2025, are not included in the accompanying Schedule.
Expenditures reported on the Schedule are reported on the cash 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.
The Department does not use the de minimis indirect cost rate as the Department is not allowed to per the Uniform Guidance.
Expenditures reported for AL No. 97.036, Disaster Grants – Public Assistance, represent federal reimbursements received during the year ended June 30, 2025 for eligible costs that were incurred and paid by the Department in prior fiscal years using non-federal funds. Such amounts are reported as federal expenditures for purposes of the Schedule upon the earlier of reimbursement from the federal government or notification of the approval of project closeout.