Audit 317706

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting, which is the same basis used for the financial statements of the Chamber. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Chamber has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Chamber utilizes actual indirect cost rates that are included in their cost allocation plan which is reviewed and is allowed under the grant. Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting, which is the same basis used for the financial statements of the Chamber. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting, which is the same basis used for the financial statements of the Chamber. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Chamber has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Chamber utilizes actual indirect cost rates that are included in their cost allocation plan which is reviewed and is allowed under the grant. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Tri-City Regional Chamber of Commerce (the Chamber), under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of OMB Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the schedule presents only a selected portion of the operations of the Chamber, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Chamber.

Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting, which is the same basis used for the financial statements of the Chamber. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Chamber has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Chamber utilizes actual indirect cost rates that are included in their cost allocation plan which is reviewed and is allowed under the grant. The Chamber has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Chamber utilizes actual indirect cost rates that are included in their cost allocation plan which is reviewed and is allowed under the grant.