Audit 328560

Title: NOTE A - BASIS FOR PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the District’s food services fund as an inventory asset and federal revenue when received totaling $432,192 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Box Elder School District (the District) under programs of the federal government for the year ended June 30, 2024. The information in the 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 Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the District.

Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the District’s food services fund as an inventory asset and federal revenue when received totaling $432,192 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the District’s food services fund as an inventory asset and federal revenue when received totaling $432,192 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: NOTE C - RELATIONSHIP TO DISTRICT'S FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the District’s food services fund as an inventory asset and federal revenue when received totaling $432,192 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. A reconciliation of federal revenue reported on the District’s basic financial statements and the Schedule for the year ended June 30, 2024 is detailed in the table.