Title: Basis of Presentation
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The amounts reported in the accompanying consolidated Schedule were obtained from the Agencys general ledger. Because the Schedule presents only a selected portion of the operations, it is not intended to and does not present the financial position and changes in net assets of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal or other pass-through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Agency has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALNs have been appropriately listed by applicable programs. Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Three clusters were identified in the schedule as follows: Head Start Cluster - This cluster provides awards to promote school readiness of low-income children (including American Indians, Alaska Natives, and migrant and season farm workers) by enhancing children's cognitive, social and emotional development. CCDF Cluster - This cluster includes awards that provides funds to States, Territories, and Indian tribes (tribe) to increase the availability, affordability, and quality of child care services. Funds are used to subsidize child care for low-income families where the parents are working or attending training or educational programs, as well as for activities to promote overall child care quality for all children, regardless of subsidy receipt. WIOA Cluster - This cluster includes awards that provide grant programs to states to help job seekers access employment, education, training and support services to succeed in the labor market. The WIOA programs provide employment and training programs for adults, dislocated workers, and youth, and Wagner-Peyser Act employment services administered by the Department of Labor (DOL). The programs also provide adult education and literacy services that complement the Vocational Rehabilitation State grants awarded by the U.S. Department of Education. These grants assist individuals with disabilities in obtaining employment and help job seekers achieve gainful employment. Youth employment and educational services are available to eligible out-of-school youth, ages 16 to 24, and low-income in-school youth, ages 14-21, that face barriers to employment.
Title: Relationship of the Schedule to Program Financial Reports
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following: The Agency's fiscal year end may differ from the program's year-end. Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period. Fixed asset purchases and the resultant depreciation charges are recognized as property and equipment, net in the Agency's financial statements and as expenditures in the program financial reports.
Title: Federal Pass-Through Funds
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The Agency is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as pass-through are considered to be direct.
Title: Facilities and Administrative Costs (F&A Costs)
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The base rate for indirect cost recoveries was 17.20% for the year ended March 31, 2022.
Title: Contingencies
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
Grant monies received and disbursed by the Agency are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. The Agency does not believe that such disallowance, if any, would have a material effect on the financial position of the Agency. As of March 31, 2022, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Noncash Assistance
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The Agency did not receive any federal noncash assistance for the fiscal year ended March 31, 2022.
Title: Subrecipients
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The Agency did not provide federal funds to subrecipients for the fiscal year ended March 31, 2022.
Title: Loans and Loan Guarantees
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The Agency did not have any loans or loan guarantee programs required to be reported on the Schedule.
Title: Federally Funded Insurance
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The Agency did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ending March 31, 2022.
Title: Consolidation of SEFA
Accounting Policies: The Schedule of Expenditures of Federal Awards (the "Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms the basis of reporting to grantors for reimbursement under the terms of the Agency's federal grants.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10% de Minimis indirect cost rate for the fiscal year ended March 31, 2022.
The accompanying consolidated schedule of expenditures of federal awards includes grants awarded to Community Services Agency Development Corporation, which is a subsidiary of Community Services Agency.