Audit 303338

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. Negative amounts shown on the schedule represent adjustments or credits made to amounts reported as expenditures in prior years. 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. Non-cash assistance is reported in the schedule at the fair market value of commodities received, which is provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Freeport Union Free School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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. Negative amounts shown on the schedule represent adjustments or credits made to amounts reported as expenditures in prior years. 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. Non-cash assistance is reported in the schedule at the fair market value of commodities received, which is provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Freeport Union Free School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Equipment purchased with federal funds is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.