Audit 291483

Title: Note 1 - Basis of Presentation Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reflected on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Braination, Inc. and its affiliates have not elected to use the 10 percent de minimis indirect cost rate for the year ended August 31, 2023. The accompanying schedule of expenditures of federal and state awards (the Schedule) summarizes the expenditures of Braination, Inc. and its affiliates (Inspire Academies and Braination Foundation) under programs of the federal and state governments 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Braination, Inc. and its affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Braination, Inc. and its affiliates.

Title: Note 3 - Non-Profit Charter School Chart of Accounts Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reflected on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Braination, Inc. and its affiliates have not elected to use the 10 percent de minimis indirect cost rate for the year ended August 31, 2023. For all federal programs, Braination, Inc. and its affiliates used the net asset classes and codes specified by Texas Education Agency (TEA) in the Special Supplement of Financial Accounting and Reporting, Non-Profit Charter School Chart of Accounts. Net assets with donor restrictions codes are used to account for resources restricted or designated for specific purposes by the grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions codes.

Title: Note 4 - Other Disclosures Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reflected on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Braination, Inc. and its affiliates have not elected to use the 10 percent de minimis indirect cost rate for the year ended August 31, 2023. There were no loans or loan guarantees outstanding at year end. Braination, Inc. and its affiliates have not elected to use the 10 percent de minimis indirect cost rate for the year ended August 31, 2023. Braination, Inc. and its affiliates did not disburse any federal or state awards to subrecipients for the year ended August 31, 2023.