Audit 17

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: Midtown Partners, Inc. has opt out of the de minimis indirect cost rate of 10% as provided for under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Guidance, for one grant and defaulted to the indirect cost rate provided by otherdepartments for other grants. Midtown has successfully negotiated three distinct indirect cost rates: 18.21% for federal grants, 2.94% and 3.17% for other federal awards with the cognizant federal agencies. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Midtown Partners, Inc., under programs of thefederal 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 Midtown Partners, Inc., it is not intended to and does not present the financial position changes in net assets, or cash flows of Midtown Partners, Inc.