Audit 12105

Title: NOTE A Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to Training and Employment Consortium’s basic financial statements. The Schedule includes all federal programs administered by Training and Employment Consortium for the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. Purpose of the Schedule: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is a supplementary schedule to Training and Employment Consortium’s financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of Training and Employment Consortium, it is not intended to and does not present either the financial position, results of operations, or changes in fund balances of Training and Employment Consortium.

Title: NOTE B Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to Training and Employment Consortium’s basic financial statements. The Schedule includes all federal programs administered by Training and Employment Consortium for the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. Note B - Significant Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to Training and Employment Consortium’s basic financial statements. The Schedule includes all federal programs administered by Training and Employment Consortium for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the Training and Employment Consortium under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented 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). Because the Schedule presents only a selected portion of the operations of the Consortium, it is not intended to and does not present the financial position or changes in net position of the Consortium. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the Consortium and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for Training and Employment Consortium are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the modified accrual basis of accounting. Revenues are recognized when measurable and available. Expenditures are recorded when the related liability is incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For the fiscal year ended June 30, 2023, the Consortium had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate The Consortium does not use the 10% de minimis indirect cost rate. Instead, the Consortium is provided funds per each specific contract for indirect and administrative costs.