Audit 1786

Title: Relationship to Financial Statements Accounting Policies: General The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal awards programs of Northern Southeast Regional Aquaculture Association, Inc. The information in the SEFA 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). Northern Southeast Regional Aquaculture Association, Inc.'s reporting entity is defined in Note 1 of Northern Southeast Regional Aquaculture Association, Inc.'s financial statements. Federal awards received directly from federal agencies or passed through agencies of the State of Alaska or other non-federal agencies is included in the SEFA. Basis of Accounting Expenditures reported on the SEFA are presented using the accrual basis of accounting, which is described in Note 1 of Northern Southeast Regional Aquaculture Association, Inc.'s financial statements. 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. Northern Southeast Regional Aquaculture Association, Inc. has elected not to use the ten percent de-minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Northern Southeast Regional Aquaculture Association, Inc. has elected not to use the ten percent de-minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of state revenues reported in Northern Southeast Regional Aquaculture Association, Inc.'s financial statements to state expenditures reported in the Schedule of Expenditures of Federal Awards: As reported in the Statements of Activities:Federal capital grant passed through the State of Alaska $ 2,017,750