Notes to SEFA
The schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of Mountainland Head Start, Inc. (the Organization). The Organization is defined in Note 1 to the Organization’s financial statements. All federal awards received directly from federal agencies as well as federal awards passed through from other government agencies are included on the Schedule.
The Schedule is presented using the accrual basis of accounting (GAAP). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The Organization has not elected to use the 10-percent de minimus indirect cost rate.
The Organization did not provide federal award funding to any subrecipient during the year ended April 30, 2026.
The Organization establishes its budget on a basis different from actual activity, which is reported on a GAAP basis. Purchase orders and commitments outstanding at April 30 using grant monies are recorded as current year expenditures. Purchases of capital assets are recorded as expenditures. In addition, service hours donated by parents are measured and recorded. Accordingly, actual activity is converted to the budgetary basis on the Schedules of Revenues and Expenditures - Budget and Actual for comparison purposes. The attached tables reconcile revenues on a GAAP basis to revenues on a budgetary basis for the year ended April 30, 2026, and reconciles grant expenses on a GAAP basis to grant expenditures on a budgetary basis for the year ended April 30, 2026.