Audit 301936

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Kiryas Joel Union Free School District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. As a local government subgrantee, the District is required to use a Restricted Indirect Cost Rate (RICR) for its federal awards programs due to its statutory requirement to supplement, not supplant, non-Federal funds. The District’s RICR is calculated by the pass-through agency, the New York State Department of Education. No amounts were provided to subrecipients.

Title: OTHER DISCLOSURES Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Kiryas Joel Union Free School District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. As a local government subgrantee, the District is required to use a Restricted Indirect Cost Rate (RICR) for its federal awards programs due to its statutory requirement to supplement, not supplant, non-Federal funds. The District’s RICR is calculated by the pass-through agency, the New York State Department of Education. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.