Audit 301323

Title: NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation - The accompanying schedule of expenditures of federal awards (the "Schedule"), includes the federal grant activity of Mother Lode Job Training Agency (the "Agency"), under programs of the federal government for the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The information in this 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). Relationship to financial reports - Information included in the accompanying Schedule is in substantial agreement with the information reported in the related financial reports for major programs. Program costs - The Agency accounts for and reports on the costs of program activities covered under the federal grant awards on an accrual basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as described in 2 CFR 200.414. Basis of presentation - The accompanying schedule of expenditures of federal awards (the "Schedule"), includes the federal grant activity of Mother Lode Job Training Agency (the "Agency"), under programs of the federal government for the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The information in this 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). Relationship to financial reports - Information included in the accompanying Schedule is in substantial agreement with the information reported in the related financial reports for major programs. Program costs - The Agency accounts for and reports on the costs of program activities covered under the federal grant awards on an accrual basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. Subrecipients - The Agency does not pass through funds to subrecipients. WIOA Cluster - 2 CFR 200.17 defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. The OMB Compliance Supplement lists specific programs to be included in the WIOA Cluster; however, due to state government guidance, an additional program was required to be included in this cluster. Federal Grantor, Program Title Federal Assistance Listing Number U.S. Department of Labor WIOA Adult Program 17.258 WIOA Youth Activities 17.259 WIOA Dislocated Worker Formula Grants 17.278

Title: NOTE 2 –INDIRECT COSTS Accounting Policies: Basis of presentation - The accompanying schedule of expenditures of federal awards (the "Schedule"), includes the federal grant activity of Mother Lode Job Training Agency (the "Agency"), under programs of the federal government for the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The information in this 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). Relationship to financial reports - Information included in the accompanying Schedule is in substantial agreement with the information reported in the related financial reports for major programs. Program costs - The Agency accounts for and reports on the costs of program activities covered under the federal grant awards on an accrual basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. De Minimis Rate Used: Y Rate Explanation: The Agency has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as described in 2 CFR 200.414. The Agency has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as described in 2 CFR 200.414.