Notes to SEFA
The accompanying schedules of expenditures of federal awards and state financial assistance (the “Schedules”) include the federal and state grant activity of Montclair Child Development Center, Inc. (the “Organization”) under programs of the federal and state governments, respectively, for the year ended November 30, 2025. The information in these Schedules 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) and New Jersey Department of the Treasury Circular Letter 25-12 OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, changes in net assets or cash flows of the Organization.
Expenditures reported on the schedules of expenditures of federal awards and state financial assistance are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Organization does not claim indirect cost and therefore does not have to make any election to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Pass-through entity identifying numbers are presented where available.
In April 2024, the federal Office of Management and Budget (OMB) made significant updates to Title 2 of the Code of Federal Regulations also known as the “Uniform Guidance”. The updates, now known as the OMB Guidance for Federal Financial Assistance, apply to projects that began on or after October 1, 2024. New and incrementally funded federal awards issued on or after October 1, 2024 will be subject to the recently issued OMB Guidance for Federal Financial Assistance. The Uniform Guidance raises the single audit expenditure threshold from $750,000 to $1,000,000. The new single audit expenditure threshold is applicable for recipients expending federal funds or New Jersey State funds of $1,000,000 or greater during any fiscal year period beginning after October 1, 2024. The Organization complied with these requirements for the fiscal year ended November 30, 2025.