Audit 344432

Title: NOTE 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 contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Salaries are charged to the program at the actual pay rates for the hours worked by employees on the program based on timesheets prepared by the employees and approved by their supervisors. The costs are charged to the program as incurred for each pay period. Materials and supplies purchased for the program are recorded at cost. De Minimis Rate Used: N Rate Explanation: n/a The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of STARBASE Minnesota, Inc. under programs of the federal government for the year ended September 30, 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 STARBASE Minnesota, Inc.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the 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 are limited as to reimbursement. Salaries are charged to the program at the actual pay rates for the hours worked by employees on the program based on timesheets prepared by the employees and approved by their supervisors. The costs are charged to the program as incurred for each pay period. Materials and supplies purchased for the program are recorded at cost. De Minimis Rate Used: N Rate Explanation: n/a Expenditures reported on the Schedule are reported on the 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 are limited as to reimbursement. Salaries are charged to the program at the actual pay rates for the hours worked by employees on the program based on timesheets prepared by the employees and approved by their supervisors. The costs are charged to the program as incurred for each pay period. Materials and supplies purchased for the program are recorded at cost.