Audit 33823

Title: Loan/loan guarantee outstanding balances Accounting Policies: GENERAL: THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (THE SCHEDULE)PRESENTS THE ACTIVITY OF ALL FEDERAL AWARD PROGRAMS OF DENMARK-OLAR SCHOOL DISTRICT NO. TWO (DISTRICT) FOR THE YEAR ENDED JUNE 30, 2022. ALL FEDERAL AWARDS RECEIVED DIRECTLY FROM FEDERAL AGENCIES, AS WELL AS THOSE PASSED THROUGH OTHER GOVERNMENT AGENCIES, ARE INCLUDED ON THE SCHEDULE. BASIS OF ACCOUNTING: THE ACCOMPANYING SCHEDULE IS PRESENTED USING THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. RELATIONSHIP TO FINANCIAL STATEMENTS: FEDERAL AWARD EXPENDITURES ARE REPORTED IN THE DISTRICT'S FINANCIAL STATEMENTS AS EXPENDITURES IN THE SPECIAL REVENUE FUND AND OPERATING EXPENSES IN THE PROPRIETARY FUND. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS: AMOUNTS REPORTED IN THE ACCOMPANYING SCHEDULE AGREE WITH THE AMOUNTS REPORTED IN THE RELATED FEDERAL FINANCIAL REPORTS EXCEPT FOR TIMING DIFFERENCES RELATING TO EXPENDITURES MADE SUBSEQUENT TO THE FILING OF THE FEDERAL FINANCIAL REPORTS. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 37528711.