Audit 11779

Title: Note 2 - RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of Second Harvest Food Bank of Greater New Orleans and Acadiana (“Second Harvest”). Second Harvest’s reporting entity is defined in Note 1 to the financial statements for the year ended June 30, 2023. All federal awards received directly from federal agencies are included on the schedule, as well as federal awards passed-through other government agencies. b. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 2 to Second Harvest’s financial statements for the year ended June 30, 2023. c. Payments to Subrecipients There were no payments to subrecipients for the year ended June 30, 2023. Food commodities of $21,822,447 were passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: N/A Federal revenues of $20,072,209 are reported on the Statement of Activities and classified as fees and grants from other federal agencies of $2,109,125, U.S. Department of Agriculture commodities of $16,104,587, and U.S. Department of Agriculture administration of $1,858,497.

Title: Note 3 - FOOD DISTRIBUTION Accounting Policies: Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of Second Harvest Food Bank of Greater New Orleans and Acadiana (“Second Harvest”). Second Harvest’s reporting entity is defined in Note 1 to the financial statements for the year ended June 30, 2023. All federal awards received directly from federal agencies are included on the schedule, as well as federal awards passed-through other government agencies. b. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 2 to Second Harvest’s financial statements for the year ended June 30, 2023. c. Payments to Subrecipients There were no payments to subrecipients for the year ended June 30, 2023. Food commodities of $21,822,447 were passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: N/A Non-monetary assistance is reported in the Schedule of Expenditures of Federal Awards at the average wholesale value of the commodities received and disbursed. Nonmonetary assistance included on the Schedule of Expenditures of Federal Awards was $21,822,447 for the year ended June 30, 2023.