Audit 302688

Title: CAPITAL ADVANCE Accounting Policies: The schedule of expenditures of federal awards (the schedule) incldues the federal grant activity of the Project under programs of the federal government as of June 30, 2023. 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). Because the schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. Expenditures on the schedule ar reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherin certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For purposes of presentation on the schedule, the Uniform Guidance requires that the balance of the Section 811 capital advance be included for each of the 40 years through which continuing compliance requirements must be met (January 1, 2055). For purposes of presentation on the Project’s financial statements, this balance is reported as net assets with donor restrictions, in accordance with generally accepted accounting principles.