The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared in the format as required under OMB Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. The purpose of this schedule is to present a summary of those activities of Urban Strategies, Inc. for the year ended June 30, 2025 which have been financed, in part, by the federal government. For purposes of this schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, direct appropriations, and other non-cash assistance. Because the Schedule presents only a selected portion of the activities of Urban Strategies, Inc., it is not intended to and does not present the financial position nor the changes in net assets, revenues, expenditures, or cash flows of Urban Strategies, 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. Contributions Contributions received are recorded as without donor or with donor restrictions, depending on the existence and/or nature of donor’s restriction. All contributions are considered to be without donor restrictions unless specifically restricted by the donor. All donor-restricted support is reported as an increase in net assets with donor restrictions, depending on the nature of the restriction. When a restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. Grant Awards The Organization uses the accrual basis of accounting to report federal awards expended. Federal, state, and other grants awards received for specific purpose are recognized as support to the extent of the related expenses incurred in compliance with the specific restrictions. The principle followed by Urban Strategies, Inc. in preparing the accompanying schedules is as follows: • Expenditures for direct costs are recognized as incurred using the accrual method of accounting principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR Part 200. Under those cost principles, certain types of expenditures are not allowed or are limited in regard to reimbursement. • Indirect costs are recovered at the rates specified under the various grants and contracts or the Organization’s approved indirect cost rate, whichever is lower.
The Organization elected to use the 10 percent de minimis indirect cost rate as permitted under the Uniform Guidance.
Federal expenditures reported on the Schedule of Expenditures of Federal Awards are reported in the Organization’s financial statements. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of Federal Awards due to capitalization of assets, organizations matching or in-kind contribution.