Audit 290875

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of East Waco Innovative School Development, Inc. (Charter Holder for Rapoport Academy Public School) (the "School") under programs of the federal government for the year ended August 31, 2023. 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 School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. 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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. For all federal programs, the School used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools - Financial Accounting and Reporting Nonprofit Chart of Accounts, Nonprofit Charter School Chart of Accounts. Net assets with donor restrictions are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions. De Minimis Rate Used: N Rate Explanation: The School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.