Audit 33143

Accounting Policies: All federal grant operations of Artesia Public Schools (the District) are included in the scope of the Office of Management and Budget(OMB) Uniform Grant Guidance audit (the Single Audit). The Single Audit was performed in accordance with the provisions of theOMB Circular Compliance Supplement (Revised April 2022 the Compliance Supplement). Compliance testing of all requirements aredescribed in the Compliance Supplement, was performed for the grants programs noted below. These programs represent all federal awardprograms and other grants with fiscal year 2022 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) offederally granted funds. Actual coverage is approximately 63% of total cash and non-cash federal award program expenditures. Total cashexpenditures were in the amount of $6,190,870 and all non-cash expenditures amounted to $169,984.The District had two federal programs considered to be a High-Risk Type A program for the year ended June 30, 2022.The U.S. Department of Education is the Districts oversight agency for single audit.Basis of presentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the District underprograms of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with therequirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selectedportion of the operations of the District, it is not intended to and does not present the financial position and changes in net position of theDistrict. All federal programs considered active during the year ended June 30, 2022, are reflected on the Schedule. An active federal programis defined as a federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustmentsduring the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule isprepared using the accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met thequalifications for the respective grant. Grant revenues for the Food Donation Program are based upon commodities received, at amountsper standard price listing, published quarterly by the United States Department of Agriculture (the USDA). In addition, there is no federalinsurance in effect during the year and loan or loan guarantee outstanding at year end. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.