Audit 14786

Title: NOTE 3 - FOOD COMMODITIES Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Sharpsville Area School District (School District) under programs of the federal government for the year ended June 30, 2023. The information in this 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 School District, it is not intended to and does not present the net position, activities, or cash flow of School District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. De Minimis Rate Used: N Rate Explanation: School District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Non-Cash assistance is reported in the Schedule at the fair market value of the commodities when received and distributed. At June 30, 2023, the School District had $ 4,343 of food commodity inventory.

Title: NOTE 4 – SUBRECIPIENT FUNDING Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Sharpsville Area School District (School District) under programs of the federal government for the year ended June 30, 2023. The information in this 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 School District, it is not intended to and does not present the net position, activities, or cash flow of School District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. De Minimis Rate Used: N Rate Explanation: School District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. There were no funds passed through to subrecipients from any of the federal programs.