Audit 21656

Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state grant activity of the Arlington Community School System (the System) under programs of those 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net position, or cash flows of the System. 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. 2) Pass-through entity identifying numbers are presented where available. 3) There were no federal awards passed through to subrecipients. 4) The System has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 5) Non-monetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.