Audit 320922

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Papahānaumokuākea Marine Debris Project (the “Organization”) under programs of the federal government for the fifteen months ended December 31, 2023. The information on this Schedule is prepared 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 Organization, it is not intended to and does not present the financial position or changes in net assets of the Organization.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. A summary of the Organization’s significant accounting policies consistently applied in the preparation of the accompanying Schedule of Expenditures of Federal Awards. Basis of accounting - Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Cost principles - Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. Indirect cost rate - The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: NOTE 3 - MATCHING REQUIREMENTS Accounting Policies: Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the Organization to contribute non-Federal funds, matching funds to support the Federally funded programs. The Organization has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.

Title: NOTE 4 – MAJOR PROGRAMS Accounting Policies: Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. * Denotes major program, which comprised 100% of total expenditures of federal awards.

Title: NOTE 5 – AMOUNTS PROVIDED TO SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule have been prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has not passed through any federal awards to subrecipients during the year ended December 31, 2023.