Notes to SEFA
Accounting Policies: Note 1 Basis of AccountingThe accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Edinburg Child Care, Inc., under programs of the federal government for the year ended September 30, 2022. The Organization uses the accrual basis of accounting to prepare its financial statements, and the schedule of expenditures of federal awards is prepared on the same basis of accounting as the financial statements. All the information presented in the schedule has been prepared 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). Note 2 Program Costs The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the portion that Edinburg Child Care, Inc. covers on its own, are more than shown. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3 Program Income The organization reports program income based on the requirements presented in 45 CFR 75.307. The net program income recognized as of September 30, 2022 is $5,001,248. Note 4 Indirect Cost Rate For the year ended September 30, 2022, the Organization has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.