Notes to SEFA
Title: Basis of Presentation:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The School has elected to use the tenpercent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Masoras Avos, Inc. (the School) under programs of the federal government for the year endedJune 30, 2022. The information in this schedule is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations part 200 (CFR), Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the School, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of the School.
Title: Child Nutrition Program:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The School has elected to use the tenpercent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Masoras Avos, Inc. was approved by the State of New Jerseys Department of Agriculture, under theNational School Lunch Act and Child Nutrition Act of 1966, to operate the Food Nutrition Program whichincludes both the School Breakfast Program and the National School Lunch Program.
Title: Use of Estimates:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The School has elected to use the tenpercent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect certain reported amounts anddisclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The School has elected to use the tenpercent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Management considers events and transaction that occur after the financials statement date, but beforethe financial statements are issued, to provide additional evidence relative to certain estimates or toidentify matters that require additional disclosure. These financial statements were available to be issuedon March 16, 2023 and subsequent events have been evaluated through that date.