Audit 302007

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Direct expenses are recorded based upon actual expenses incurred that are allowable per the program requirements. Indirect expenses are allocated based upon recorded direct expenses. The Organization has a negotiated indirect cost rate specific to research. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance in situations where the negotiated cost rate is not applicable or allowed. The Organization did not elect to use the 10% de minimis indirect cost rate as there were no indirect costs allocated to the awards for the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: There were no indirect costs allocated to the awards for the year ended June 30, 2023. This schedule was prepared on an accrual basis. The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Rewards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. These grants are 100% pass-through to Humanities Tennessee. The Organization is assuming all audit responsibility.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Direct expenses are recorded based upon actual expenses incurred that are allowable per the program requirements. Indirect expenses are allocated based upon recorded direct expenses. The Organization has a negotiated indirect cost rate specific to research. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance in situations where the negotiated cost rate is not applicable or allowed. The Organization did not elect to use the 10% de minimis indirect cost rate as there were no indirect costs allocated to the awards for the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: There were no indirect costs allocated to the awards for the year ended June 30, 2023. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Direct expenses are recorded based upon actual expenses incurred that are allowable per the program requirements. Indirect expenses are allocated based upon recorded direct expenses. The Organization has a negotiated indirect cost rate specific to research. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance in situations where the negotiated cost rate is not applicable or allowed. The Organization did not elect to use the 10% de minimis indirect cost rate as there were no indirect costs allocated to the awards for the year ended June 30, 2023.

Title: NONCASH ASSISTANCE Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Direct expenses are recorded based upon actual expenses incurred that are allowable per the program requirements. Indirect expenses are allocated based upon recorded direct expenses. The Organization has a negotiated indirect cost rate specific to research. The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance in situations where the negotiated cost rate is not applicable or allowed. The Organization did not elect to use the 10% de minimis indirect cost rate as there were no indirect costs allocated to the awards for the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: There were no indirect costs allocated to the awards for the year ended June 30, 2023. No federal awards were expended in the form of noncash assistance.