Audit 27160

Title: Loan Balance and Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Hamilton Southeastern Schools (HSE) under programs of the federal government for the year ended June 30, 2022. The accompanying notes are an integral part of this Schedule. 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 HSE, it is not intended to and does not present the financial position, changes in net position or cash flows of HSE. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain type of expenditures are not allowable or are limited as to reimbursement. HSE has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. HSE had no federal loans that they were administering as of June 30, 2022 and HSE did not pass-through any federal funds to subrecipients.