Notes to SEFA
Accounting Policies: Notes to Schedule:This schedule was prepared using the same basis of accounting and the same significant accounting policies, as applicable, used for the financial statements with the following exceptions:Equipment purchases and construction costs are shown as expenditures rather than being capitalized and depreciated over their useful lives.Deposits into Replacement Reserve accounts as required by the USDA are recognized as expenditures in the Head Start Program. These deposits are a requirement of the loan agreements under which Head Start facilities were constructed and are restricted for future repairs and replacements.Loan repayments as required by the USDA are recognized as expenditures in the Head Start program.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.