The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of New Strides, Inc. (the “Organization”), a nonprofit organization as defined in Note 1 to the Organization’s financial statements, under programs of the federal government for the year ended December 31, 2025. The information in this Schedule is presented in accordance with the requirement 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of the Organization.
The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the general purpose financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are either not allowable or are subject to limitations on reimbursement.
There were no payments made to subrecipients from federal awards received during the year ended December 31, 2025.
The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Matching costs (i.e. the Organization’s share of certain program costs) are not included in the reported expenditures.
No insurance is carried specifically to cover equipment purchased with Federal funds. Equipment purchased with Federal funds is covered by the Organization’s casualty insurance policy.
On January 2, 1998, the Organization entered into a capital advance program regulatory agreement with the U.S. Department of Housing and Urban Development (“HUD”) with respect to the acquisition of four properties in Suffolk County for $1,275,500. The capital advance from HUD was provided under Section 811 of the Cranston-Gonzalez National Affordable Housing Act; HUD holds a 40-year non-interest bearing mortgage on the properties. The Organization is not required to repay the principal or pay interest and the mortgage note will be forgiven at maturity, as long as the housing remains available to low income persons with disabilities for a period of 40 years in accordance with Section 811 program and HUD requirements.
The four properties owned by New Strides, Inc. are covered under certain insurance policies. The policies in effect and coverage at year-end are as follows: Building and contents $ 1,228,140 Comprehensive general liability 1,000,000 any one occurrence 3,000,000 annual aggregate Personal injury 1,000,000 Damage to rented premises 100,000 Medical expenses (any one person) 5,000 Abuse sublimit (per person) 1,000,000 Excess liability 2,000,000
The Organization has determined that federal programs with expenditures of $1,000,000 or more are Type A Programs. The Organization evaluated its Type A programs in accordance with the risk-based approach prescribed by the Uniform Guidance to determine which programs were required to be audited as major programs.