Audit 319237

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are reported following the cost principles contained in the Uniformed Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No variable/indirect costs were applied to these grant projects. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Yadkin Valley Telephone Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated balance sheet, consolidated statements of capitalization, revenues and expenses, comprehensive income, or cash flows of the Corporation.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are reported following the cost principles contained in the Uniformed Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No variable/indirect costs were applied to these grant projects. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures under the Growing Rural Economies with Access to Technology, Economic Development Administration, and Rural Utilities Service programs are recognized following the cost principles described in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are reported following the cost principles contained in the Uniformed Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No variable/indirect costs were applied to these grant projects. The Corporation has elected not to use the de minimis 10 percent indirect cost rate allowed under the Uniform Guidance.