Audit 310224

Title: Presentation and Basis of Accounting Accounting Policies: Prepared on the accrual basis of accounting which conforms to accounting principles generally accepted in the United States of America and is consistent with the IDA's basic financial statements. The information in this Schedule is presented in accordance with the requirements of applicable guidance, therefore some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered directly between IDA and agencies and departments of the federal government and all sub-awards to IDA by non-federal organizations pursuant to federal grants, contracts and similar agreements.For the purpose of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative numbers in the schedule represent adjustments to amounts previously reported in the normal course of business. De Minimis Rate Used: N Rate Explanation: Agreed upon provisional rate used The accompanying Schedule of Expenditures of Federal Awards (the Schedule) for the Institute for Defense Analyses (IDA) has been prepared on the accrual basis of accounting which conforms to accounting principles generally accepted in the United States of America and is consistent with the IDA's basic financial statements. 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 (the “Uniform Guidance”), therefore some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered directly between IDA and agencies and departments of the federal government and all sub-awards to IDA by non-federal organizations pursuant to federal grants, contracts and similar agreements. For the purpose of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative numbers in the schedule represent adjustments to amounts previously reported in the normal course of business.

Title: Indirect Cost Rate Accounting Policies: Prepared on the accrual basis of accounting which conforms to accounting principles generally accepted in the United States of America and is consistent with the IDA's basic financial statements. The information in this Schedule is presented in accordance with the requirements of applicable guidance, therefore some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered directly between IDA and agencies and departments of the federal government and all sub-awards to IDA by non-federal organizations pursuant to federal grants, contracts and similar agreements.For the purpose of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative numbers in the schedule represent adjustments to amounts previously reported in the normal course of business. De Minimis Rate Used: N Rate Explanation: Agreed upon provisional rate used The Institute has negotiated an indirect cost rate with the Defense Contract Management Agency as our cognizant agency for indirect costs. As such, the Institute did not elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.