Audit 340942

Title: 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures  are  recognized  following  the  cost  principles  in  the  Uniform  Guidance,  wherein  certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Advantage Academy has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Eagle Advantage Schools, Inc. dba Advantage Academy (Advantage Academy). The information in this schedule is presented in accordance with the requirements of Title 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 Advantage Academy, it is not intended to and does not present the financial position, changes in net assets or cash flows of Advantage Academy. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures  are  recognized  following  the  cost  principles  in  the  Uniform  Guidance,  wherein  certain types of expenditures are not allowable or are limited as to reimbursement. Advantage Academy has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: 2. Noncash Commodities Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures  are  recognized  following  the  cost  principles  in  the  Uniform  Guidance,  wherein  certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Advantage Academy has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Food commodities are recognized as federal expenditures when distributed. Distributed food is reported  in  the  Schedule  under  the  National  School  Lunch  Program  and  is  valued  based  on  amounts reported to Advantage Academy by the Texas Department of Agriculture. These amounts are considered to be non‐cash assistance to Advantage Academy. Advantage  Academy  received  non‐cash  assistance  in  the  form  of  food  commodities  totaling  $35,052 for the year ended August 31, 2024.