Audit 299265

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Federal Emergency Management Agency (“FEMA”) expenditures are reported on the SEFA when: (1) FEMA has approved TGI’s Project, and (2) TGI has incurred eligible expenditures. FEMA federal awards expended in years subsequent to the fiscal year in which the Project is approved are reported in TGI’s SEFA in those subsequent years. 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. De Minimis Rate Used: N Rate Explanation: TGI has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule” or “SEFA”) includes the federal award activity of Governors Island Corporation (d/b/a The Trust for Governors Island) (“TGI”), a component unit of The City of New York, for the year ended June 30, 2023. 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of TGI, it is not intended to and does not present the net position, changes in net position, or cash flows of TGI.