Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity ofNewton-Conover City Board of Education under the programs of the federal government and the State of North Carolina for the yearended June 30, 2022. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awardsand the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of NewtonConover City Board of Education, it is not intended to and does not present the financial position, changes in net assets or cashflows of Newton-Conover City Board of Education.