Audit 18688

Title: Non-cash Assistance Accounting Policies: The accompanying schedule of expenditures of federal and state awards (SEFSA) includes the federal and state grantactivity of the Board of Education of Elkin City Schools under the programs of the federal government and the State of NorthCarolina for the year ended June 30, 2022. The information in this schedule is presented in accordance with therequirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the schedulepresents only a selected portion of the operations of the Board of Education of Elkin City Schools, it is not intended to anddoes not present the financial position, changes in net assets, or cash flows of the Board of Education of Elkin City Schools. De Minimis Rate Used: N Rate Explanation: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, when certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to us 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Included in the amounts reported on the SEFSA, the Board received non-cash assistance in the form of food commodities. Non-cash items with a fair value of $47,603 were received during the year ended June 30, 2022. These non-cash items received were included in the determination of federal and state awards expended for the year ended June 30, 2022.