Audit 29725

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Spartanburg County First Steps to School Readiness Partnership (the Local Partnership) under programs of the federal government for the year ended June 30, 2022. The information in the 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 Local Partnership, it is not intended to and does not present the financial position or changes in net assets of the Local Partnership.The financial information shown in the Schedule of Expenditures of Federal Awards reflects amounts recorded by the Local Partnership during its fiscal year July 1, 2021 through June 30, 2022. This information is presented on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles, which is the basis of accounting used in the preparation of the Local Partnerships financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Local Partnership has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The actual percentage in use for 2022 was 7.44%.