Notes to SEFA
Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for low-income families in the East End of Houston, Texas and its surrounding communities.
The schedules of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activities of CFC. Expenditures reported in the Schedules are reported on the accrual basis of accounting. Because the Schedules presents only a selected portion of CFC’s operations, it is not intended to and does not present its financial position, changes in net assets, or cash flows for 2025.
Amounts from the Emergency Food Assistance Program included on the accompanying Schedule of Expenditures of Federal Awards represent noncash assistance in the form of food commodities.
Expenditures included in the Schedules represent both direct costs and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, CFC’s indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In 2025, CFC was issued a provisional Modified Total Direct Cost rate of 38.07% for 2025 and 2026.
Expenditures included in the Schedules may differ from amounts reflected in the financial reports submitted to grant awarding agencies for the following reasons: • Expenses accrued at the end of CFC’s fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end; • Program matching costs that are reported in the financial reports submitted to awarding agencies are not included in the amounts reported in the Schedule; and • Differences may exist between grant periods and CFC’s accounting period.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored and reviewed by the grantors. Failure to satisfy the requirements of contact agreements could result in disallowed costs and return of funds to grantors. Management believes that CFC is in substantial compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts and disclosures in the financial statements.