Audit 25598

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization does not utilize the 10% de minimis indirect cost rate as provided under the Uniform Guidance as it does not meet the criteria to elect it. Rather, the Organization has a negotiated indirect cost rate negotiated with the U.S. Department of Justice, Office of Justice Programs, under a provisional/final rate structure. These provisional rates are approved based on actual indirect cost rates incurred in the prior fiscal year. The Organization applies the actual indirect cost rates to its federal awards unless statutory or agreed-upon rate caps are in place that limited indirect recovery. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Equal Justice Works (the "Organization") under programs of the federal government for the year ended August 31, 2022. The 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.