Audit 32205

Accounting Policies: Note 1 Basis of Presentation The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal grant activity for Memphis Business Academy under programs of the federal government for the year ended June 30, 2022. 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 (Uniform Guidance) and the State of Tennessee Audit Manual. Because the Schedule presents only a selected portion of the operation of Memphis Business Academy, it is not intended to and does not present the net position or changes in net position of Memphis Business Academy. Note 2 Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity contract numbers are presented where available. There were no federal awards passed through to subrecipients. Memphis Business Academy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.