Audit 307511

Title: NOTE 1 - BASIS OF ACCOUNTING Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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 RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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.

Title: NOTE 2 - FEDERAL DE MINIMIS INDIRECT RATE Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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 RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D NOTE 2 - FEDERAL DE MINIMIS INDIRECT RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D

Title: NOTE 3 - FEDERAL UNRESTRICED INDIRECT RATE Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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 RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal unrestricted rate of 17.59% for these grants: ALN 84.425D 84.425U 84.425W

Title: NOTE 4 - PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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 RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D The amounts shown as current year expenses represent only the federal award portion of the program costs. Entire program costs, including the South Whidbey 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE 5 - NONCASH AWARDS Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING: This Schedule is prepared on the same basis of accounting as the South Whidbey School District’s financial statements. The 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 RATE: The South Whidbey School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The South Whidbey School District used the federal restricted rate of 5.74%. The South Whidbey School District used the federal indirect rate of 8.70% for these grants: ALN 93.243 93.788 93.959 The South Whidbey School District used the federal indirect rate of 12.60% for this grant: ALN 84.425D The amount of commodities reported on the schedule is the value of commodities distributed by the South Whidbey School District during the current year and priced as prescribed by USDA.