Audit 338464

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. 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. Negative amounts reported in the schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. Included in the statement of activities is $215,028 recorded for accrued paid time off related to federal grants. This amount is not reflected on the Schedule because certain funders reimburse for this expense when paid rather than when incurred, which follows the accrual basis of accounting.Expenditures reported on the Schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. 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. Negative amounts reported in the schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. Included in the statement of activities is $215,028 recorded for accrued paid time off related to federal grants. This amount is not reflected on the Schedule because certain funders reimburse for this expense when paid rather than when incurred, which follows the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Reading & Math, Inc. (the Organization) under programs of the federal government for the year ended July 31, 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Title: PASS THROUGH ENTITY IDENTIFICATION NUMBERS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. 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. Negative amounts reported in the schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. Included in the statement of activities is $215,028 recorded for accrued paid time off related to federal grants. This amount is not reflected on the Schedule because certain funders reimburse for this expense when paid rather than when incurred, which follows the accrual basis of accounting.Expenditures reported on the Schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. 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. Negative amounts reported in the schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. Included in the statement of activities is $215,028 recorded for accrued paid time off related to federal grants. This amount is not reflected on the Schedule because certain funders reimburse for this expense when paid rather than when incurred, which follows the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Several of the programs, grants, and/or awards included in the schedule are missing the pass-through entity identification numbers. The missing numbers are due to the pass-through entities not providing the pass-through entity identification numbers.