Audit 331717

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of El Paso County School District No. 2 Harrison (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 Audit Requirements for Federal Awards (the “Uniform Guidance”). El Paso County School District No. 2 Harrison granted approximately $4,300,000 of the federal funds for the 2023 2024 fiscal year to component units, and actual component expenditures of approximately $2,700,000 are reported in the schedule of expenditures of federal awards for the year ended June 30, 2024, as those were expenditures incurred by the component units during the year. The remaining amounts will be reported on the District's Schedule in the subsequent year when expended by the component units. 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 net position, or cash flows of the District. Expenditures reported in the Schedule are reported on the same basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement and frequently asked questions as outlined in the Compliance Supplement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass-through entity identifying numbers are presented where available, and no subrecipient payments were identified at June 30, 2024. The District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as 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 to recover indirect costs, as allowed under the Uniform Guidance. The value of the noncash assistance, commodities donated to the District by the U.S. Department of Agriculture (USDA), was determined in accordance with the provisions of the Uniform Guidance and is reported on the schedule of expenditures of federal awards.