Audit 342500

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made to amounts reported as expenditures in prior years. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the schedule at the fair market value of commodities received and expended, which is provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: East Hampton Union Free School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were provided to subrecipients.

Title: Other disclosures Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made to amounts reported as expenditures in prior years. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the schedule at the fair market value of commodities received and expended, which is provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: East Hampton Union Free School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the East Hampton Union Free School District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.

Title: Schedule of Expenditures of Federal Awards (SEFA) Reconciliation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made to amounts reported as expenditures in prior years. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the schedule at the fair market value of commodities received and expended, which is provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: East Hampton Union Free School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (SEFA) reflects only those expenditures that are subject to the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and thus excludes certain items reported in the District's financial statements. During the fiscal year, the District received $29,010 in E-Rate funding, which is classified as federal revenue in the financial statements. However, in accordance with the Uniform Guidance, the E-Rate funding is not considered an expenditure for SEFA reporting purposes. In addition, the District reported $76,222 in surplus food commodities received from the federal government as federal revenue and expenditure in its audited financial statements, also prepared on a modified accrual basis. However, in accordance with the Uniform Guidance, only the value of surplus food commodities used during the fiscal year is required to be reported as expenditures on the SEFA. Therefore, an adjustment of $1,007 was made, resulting in a total of $75,215 reported as non-cash distributions for surplus food commodities used in the National School Lunch Program (CFDA 10.555) on the SEFA. The following is a reconciliation of the amounts reported in the financial statements to those reported in the SEFA: