Notes to SEFA
Accounting Policies: Basis of presentation The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal awards. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in KIPPs financial statements in conformity with generally accepted accounting principles. KIPP has elected not to use the 10% de minimis rate, but has elected to use a rate of 4.304% for indirect costs, as approved by the Texas Education Agency. KIPP does not have any subrecipients.Because the schedule presents only a selected portion of the operations of KIPP, it is not intended to and
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.