Audit 308573

Title: BASIS OF PRESENTATION Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule present adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years and match amounts paid. Because the Schedule presents only a selected portion of the operations of AEM, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AEM. De Minimis Rate Used: N Rate Explanation: AEM has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule present adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years and match amounts paid. Because the Schedule presents only a selected portion of the operations of AEM, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AEM.

Title: PROGRAM DESCRIPTIONS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule present adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years and match amounts paid. Because the Schedule presents only a selected portion of the operations of AEM, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AEM. De Minimis Rate Used: N Rate Explanation: AEM has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. AEM is a not-for-profit corporation located in Glendive, Montana. AEM is part of a national network of community action agencies that were created by the federal government to combat poverty. AEM partners with various agencies to provide basic needs services within eastern Montana.

Title: INDIRECT COST RATE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule present adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years and match amounts paid. Because the Schedule presents only a selected portion of the operations of AEM, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AEM. De Minimis Rate Used: N Rate Explanation: AEM has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. AEM has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.