Notes to SEFA
The accompanying schedule of expenditures of Federal awards (Schedule) includes the Federal award activity of Family Service Association and Affiliates (Association) under programs of the Federal government for the year ended June 30, 2025. 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association.
Expenditures reported on the Schedule are reported on the accrual 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 Association has not elected to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Subsequent to the issuance of the independent auditor's report on compliance, internal control over compliance and on the schedule of expenditures of federal awards required by Uniform Guidance, information came to our attention regarding a misclassification of expenditures. Federal award expenditures in the amount of $1,390,351 were reported as state award expenditures. The information was not known to management or the auditors as of the original date of the report. The schedule of expenditures of federal awards has been revised to reflect this reclassification. Audit procedures applied subsequent to the original audit report date were limited solely to the reclassification of federal expenditures.