Audit 329505

Title: Note 1 - 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, and other contractual arrangements, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as applicable. De Minimis Rate Used: N Rate Explanation: The Schools did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the grant activity of South Tech Charter Academy, Inc. and South Tech Preparatory Academy, Inc. (collectively, the “Schools”) 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 Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the Schools, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Schools.

Title: Note 2 - Summary of Significant Accounting Policies 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, and other contractual arrangements, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as applicable. De Minimis Rate Used: N Rate Explanation: The Schools did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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, and other contractual arrangements, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as applicable.

Title: Note 3 - Indirect Cost Rate 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, and other contractual arrangements, wherein certain types of expenditures are not allowable or are limited as to reimbursement, as applicable. De Minimis Rate Used: N Rate Explanation: The Schools did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schools did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.