Audit 319300

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of National Center for Manufacturing Sciences and Subsidiary (the “Center”) 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Center. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement and frequently asked questions as outlined in the 2023 Compliance Supplement Addendum. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. The Center has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Center allocates indirect costs and fringe rates based on a negotiated provisional rate by the Office of Naval Research (ONR). Provisional billings rates are used for billing purposes throughout the year and adjusted to actual at year end. Final settlement is reached after year end with the federal government for each rate year. De Minimis Rate Used: N Rate Explanation: The Center has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The Center allocates indirect costs and fringe rates based on a negotiated provisional rate by the Office of Naval Research (ONR). Provisional billings rates are used for billing purposes throughout the year and adjusted to actual at year end. Final settlement is reached after year end with the federal government for each rate year.