Audit 328391

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: For all federal programs, the Organization used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools – Financial Accounting and Reporting Non- Profit Chart of Accounts. Net assets with donor restrictions codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions codes. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: There are no indirect costs included in the Schedule. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of William A. Lawson Institute for Peace and Prosperity and Subsidiaries (the “Organization”) under programs of the federal government for the year ended June 30, 2024. 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”). 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, changes in net assets, or cash flows of the Organization.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: For all federal programs, the Organization used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools – Financial Accounting and Reporting Non- Profit Chart of Accounts. Net assets with donor restrictions codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions codes. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: There are no indirect costs included in the Schedule. For all federal programs, the Organization used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools – Financial Accounting and Reporting Non-Profit Chart of Accounts. Net assets with donor restrictions codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions codes. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: For all federal programs, the Organization used the net asset classes and codes specified by the Texas Education Agency in the Module 3: Charter Schools – Financial Accounting and Reporting Non- Profit Chart of Accounts. Net assets with donor restrictions codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restrictions codes. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: There are no indirect costs included in the Schedule. There are no indirect costs included in the Schedule.