Audit 29170

Title: NOTE C - RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The schedule of expenditures of federal and city awards (the Schedule) presents all federal and city awards required to be reported, by funding agency, received by The Pennsylvania Horticultural Society for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All awards received directly from federal agencies, as well as federal awards passed through other governmental agencies or not-for-profit organizations, are included. Such pass-through awards received from the City of Philadelphia are subject to the City of Philadelphia Subrecipient Audit Guide. As of June 30, 2022, there are no amounts passed through to subrecipients from the Society.Because the Schedule presents only a selected portion of the operations of The Pennsylvania Horticultural Society, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Pennsylvania Horticultural Society. De Minimis Rate Used: N Rate Explanation: The accompanying Schedule is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and other allowable cost standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Pennsylvania Horticultural Society has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Federal and city expenditures are reported in the consolidated statement of activities as expenses. The expenditures reported in the consolidated financial statements differ from the expenditures reported in the Schedule because not all expenditures are required to be reported in the Schedule.