Audit 301820

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized. NOTE 4 – SUBRECIPIENTS CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023. NOTE 5 – INDIRECT COST RATE The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The School has elected 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) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized. NOTE 4 – SUBRECIPIENTS CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023. NOTE 5 – INDIRECT COST RATE The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 are limited as to reimbursement.

Title: NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized. NOTE 4 – SUBRECIPIENTS CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023. NOTE 5 – INDIRECT COST RATE The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized.

Title: NOTE 4 – SUBRECIPIENTS Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized. NOTE 4 – SUBRECIPIENTS CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023. NOTE 5 – INDIRECT COST RATE The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023.

Title: NOTE 5 – INDIRECT COST RATE Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of CAFA Inc., dba Learning Foundation Performing Arts School (the School) for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. The School has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the pass-through grantor, Arizona Department of Education, the 2024 Compliance Supplement or the listing search tool at SAM.gov. When there was no federal contract number available, the School’s identification number was utilized. NOTE 4 – SUBRECIPIENTS CAFA, Inc. did not pass any funds on to sub-recipients during the year ended June 30, 2023. NOTE 5 – INDIRECT COST RATE The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.