Audit 326190

Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of Magnolia Community Services, Inc. (Magnolia). Magnolia’s reporting entity is defined in Note 1 to the financial statements for the year ended June 30, 2024. All federal awards received directly from federal agencies are included on the schedule, as well as federal awards passed through from other government agencies. b. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to Magnolia’s financial statements for the year ended June 30, 2024. Note 2 - INDIRECT COST RATE Magnolia has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended June 30, 2024, there were no indirect costs included in Schedule of Expenditures of Federal Awards. Note 3 - SUB-RECIPIENTS There were no payments to sub-recipients for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The auditee elected not to use the de minimis cost rate.