Audit 345321

Title: Major Program Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Districts and is presented using the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 510(b). De Minimis Rate Used: N Rate Explanation: The District did not elect to use 10% de minimis indirect cost rate as covered in 2 CFR Part 200 Section 414 “Indirect (F&A) Costs”. The District’s independent auditors have used a risk-based approach to determine which federal programs are “major programs” in accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 518. This risk-based approach includes consideration of current and prior audit experience, oversight by Federal Agencies and pass-through entities, the inherent risk of the Federal program, as well as other considerations. The process in paragraphs (b) through (i) of Section 518 govern auditor major program determination. Section 518(b) states “when the major program determination was performed and documented in accordance with this Subpart, the auditor’s judgement in applying the risk-based approach to determine major programs must be presumed correct.”