Audit 289559

Title: DONATED COMMODITIES Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Morgan County Board of Education (the "School System") and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Cost of Federal Regulations ("CFR") Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The School System elected not to use the 10% de minimis cost rate for the year ended June 30, 2023. The Child Nutrition Cluster includes $116,678 of non-cash expenditures in the form of donated food commodities.

Title: SUBRECIPIENTS Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Morgan County Board of Education (the "School System") and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Cost of Federal Regulations ("CFR") Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The School System elected not to use the 10% de minimis cost rate for the year ended June 30, 2023. The School System did not pass through any funds to subrecipients for the year ended June 30, 2023.