Audit 344517

Title: Basis of Presentation Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting as described in Note 2 to the special-purpose financial statements. 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. Pass-through entity identifying numbers have been presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards presents the activity of all federal financial assistance programs of the Corporation. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic special-purpose financial statements. All federal financial assistance received directly from federal agencies is included on the schedule of expenditures of federal awards. Because the schedule presents only a selected portion of the operations of the Corporation, it’s not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.

Title: Relationship to Federal Financial Reports Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting as described in Note 2 to the special-purpose financial statements. 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. Pass-through entity identifying numbers have been presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the accompanying schedule of expenditures of federal awards, which is prepared on the accrual basis explained in Note 2.

Title: Sub-recipients Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting as described in Note 2 to the special-purpose financial statements. 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. Pass-through entity identifying numbers have been presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. No federal awards were provided to sub-recipients.

Title: Single Audit – Type A/Type B Program Threshold Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting as described in Note 2 to the special-purpose financial statements. 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. Pass-through entity identifying numbers have been presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Dollar threshold used to distinguish between Type A and Type B programs is $750,000. Single audit expenditure threshold requirement is $750,000.