Audit 19482

Accounting Policies: 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal and State Awards includes the federal and state grant activity of Kids Creative 404, Inc. under programs of the federal and state governments for the ten months ended June 30, 2022. 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 Kids Creative 404, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kids Creative 404, Inc. 2. Summary of Significant Accounting Policies Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kids Creative 404, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.Pass-through entity identifying numbers are presented where available. 3. Relationship to Basic Financial StatementsFederal and state expenditures are reported in the basic financial statements as Program Activities. The expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal and State Awards due to program expenditures exceeding grant or contract budget limitations or matching or in-kind contributions which are not included as Federal and State Awards. De Minimis Rate Used: N Rate Explanation: Kids Creative 404, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.