Audit 327392

Title: NOTE 3 – CHILD NUTRITION CLUSTER Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Madison Avenue School of Arts under programs of the federal government for the fiscal year ended June 30, 2023 and is prepared in accordance with the cash basis of accounting. 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 Madison Avenue School of Arts, it is not intended to and does not present the financial position, or changes in net position, or cash flows, of the Madison Avenue School of Arts. Such expenditures are recognized following cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE 2 – DE MINIMIS INDIRECT COST RATE - CFR Section 200.414 of the Uniform Guidance allows a non-federal entity that has never received a negotiated indirect cost rate to charge a de minimis rate of 10% of modified total direct costs to indirect costs. The Madison Avenue School of Arts has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Madison Avenue School of Arts commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the Madison Avenue School of Arts assumes it expends federal monies first.