Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Edinburg Child Care, Inc., under programs of the federal government for the year ended September 30, 2025. The Organization uses the accrual basis of accounting to prepare its financial statements, and the schedule of expenditures of federal awards is prepared on the same basis of accounting as the financial statements. All the information presented in the schedule has been prepared 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).
The amounts reported as current year expenditures represent only the federal award portion of program costs. Total program costs, including costs funded by the Organization and other non-federal sources, exceed the amounts reported in the Schedule of Expenditures of Federal Awards. Such expenditures are recognized in accordance with the cost principles contained in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may be unallowable or subject to limitations under federal award requirements.
The Organization reports program income in accordance with the requirements of 2 CFR § 200.307, Program Income. Program income represents income earned from activities supported by federal awards and is accounted for in accordance with applicable federal award terms and conditions. The Organization applies program income in accordance with the method prescribed by the applicable federal awards. As of September 30, 2025, the Organization reported program income of $5,924,020.
For the year ended September 30, 2025, the Organization has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.