Audit 329404

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: St. Mary's Food Bank Alliance and Affiliates has elected not to use the ten percent de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of St. Mary’s Food Bank Alliance and Affiliates 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 St. Mary’s Food Bank Alliance and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of St. Mary’s Food Bank Alliance and Affiliates.

Title: Amounts passed through to subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: St. Mary's Food Bank Alliance and Affiliates has elected not to use the ten percent de minimus indirect cost rate as allowed under the Uniform Guidance. St. Mary’s Food Bank Alliance and Affiliates received a COVID-19 Community Development Block Grant under assistance listing 14.228 during the year ended June 30, 2022 to purchase equipment. The equipment was then to be transferred to certain subrecipient agencies as determined by St. Mary’s Food Bank Alliance and Affiliates. Through June 30, 2022, equipment was purchased and properly reflected on the Schedule as federal expenditures. However, the equipment was not transferred to subrecipient agencies until fiscal 2023 and 2024. As a result, for the year ended June 30, 2024, amounts passed through to subrecipients for this program exceeds federal expenditures.