Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of Berkshire County Head Start Child Development Program, Inc. under programs of the federal government for the year ended February 28, 2026. 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 Berkshire County Head Start Child Development Program, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Berkshire County Head Start Child Development Program, Inc.
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, where certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures of federal awards for funds passed through state agencies are based on information provided by the Commonwealth of Massachusetts Operational Services Division.
During the year ended February 28, 2026, the Organization identified an error related to the recognition of federal award revenue in the prior year. As a result, federal expenditures were understated by $161,188 in the prior year. The accompanying Schedule of Expenditures of Federal Awards presents only the federal expenditures for the current year. The prior year Schedule of Expenditures of Federal Awards has not been restated. This adjustment has been recorded as a prior period adjustment in the Organization’s financial statements and did not affect the determination of major programs in the prior year. Management has evaluated the cause of the error and has implemented corrective measures to improve controls over the identification and reporting of federal award expenditures.