Audit 21524

Title: Reconciliation to the Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state grant activity of Milwaukee Scholars Charter School, Inc. under programs of the federal and state governments for the year 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 (the Uniform Guidance) and the Wisconsin Public School District Audit Manual, issued by the Wisconsin Department of Public Instruction. Because the Schedule presents only a selected portion of the operations of Milwaukee Scholars Charter School, Inc., it is not intended to and does not present the financial position, changes in net position or cash flows, if applicable, of Milwaukee Scholars Charter School, Inc. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Such expenditures do not follow the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather apply the U.S. Department of Treasurys guidance and frequently asked questions outlined in the 2020 Compliance Supplement Addendum. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Pass-through entity identifying numbers are presented where available. The School has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Since revenues are recognized to the extent expenditures are incurred, expenditures are readily identifiable with the revenue reported.