Audit 309131

Title: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Reporting Entity California Air Pollution Control Officers Association’s (Association) Schedule of Expenditures of Federal Awards (Schedule) includes the activity of all federal award programs administered by the Association. California Air Pollution Control Officers Association is a nonprofit public benefit corporation and all federal funds expended were for nonprofit public benefit programs. Basis of Presentation 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association. The Association did not receive federal non-cash assistance and did not participate in federal insurance or loan programs. Basis of Accounting The expenditures for each of the federal financial assistance programs are presented in the Schedule on the accrual basis. This is the same basis the financial statements are presented. All expenditures represent reimbursement for expenses billed by a vendor. De Minimis Rate Used: N Rate Explanation: The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Reporting Entity California Air Pollution Control Officers Association’s (Association) Schedule of Expenditures of Federal Awards (Schedule) includes the activity of all federal award programs administered by the Association. California Air Pollution Control Officers Association is a nonprofit public benefit corporation and all federal funds expended were for nonprofit public benefit programs. Basis of Presentation 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association. The Association did not receive federal non-cash assistance and did not participate in federal insurance or loan programs. Basis of Accounting The expenditures for each of the federal financial assistance programs are presented in the Schedule on the accrual basis. This is the same basis the financial statements are presented. All expenditures represent reimbursement for expenses billed by a vendor.

Title: NOTE 2 – INDIRECT COST RATE Accounting Policies: Reporting Entity California Air Pollution Control Officers Association’s (Association) Schedule of Expenditures of Federal Awards (Schedule) includes the activity of all federal award programs administered by the Association. California Air Pollution Control Officers Association is a nonprofit public benefit corporation and all federal funds expended were for nonprofit public benefit programs. Basis of Presentation 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association. The Association did not receive federal non-cash assistance and did not participate in federal insurance or loan programs. Basis of Accounting The expenditures for each of the federal financial assistance programs are presented in the Schedule on the accrual basis. This is the same basis the financial statements are presented. All expenditures represent reimbursement for expenses billed by a vendor. De Minimis Rate Used: N Rate Explanation: The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: Reporting Entity California Air Pollution Control Officers Association’s (Association) Schedule of Expenditures of Federal Awards (Schedule) includes the activity of all federal award programs administered by the Association. California Air Pollution Control Officers Association is a nonprofit public benefit corporation and all federal funds expended were for nonprofit public benefit programs. Basis of Presentation 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association. The Association did not receive federal non-cash assistance and did not participate in federal insurance or loan programs. Basis of Accounting The expenditures for each of the federal financial assistance programs are presented in the Schedule on the accrual basis. This is the same basis the financial statements are presented. All expenditures represent reimbursement for expenses billed by a vendor. De Minimis Rate Used: N Rate Explanation: The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule which is prepared on the basis explained in Note 1.