Audit 306297

Title: NOTE 3 - PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.16% and the federal unrestricted rate of 22.24%. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Nine Mile Falls School District’s local matching share, may be more than shown. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE 4 - NONCASH AWARDS Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.16% and the federal unrestricted rate of 22.24%. The amount of commodities reported on the Schedule is the value of commodities received by the Nine Mile Falls School District during the current year and priced as prescribed by the USDA.