Audit 346076

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. In addition, agency or pass-through entity identifying numbers are presented where available. The food commodities received from the U.S. Department of Agriculture (USDA) are valued based on management’s estimate of the average wholesale value per pound of food received from the USDA. Management’s estimate is based on the results of a product valuation survey conducted by Feeding America. The value of USDA food commodities distributed during the year includes amounts held in inventory at the beginning of the year. As of June 30, 2024, the Organization had an inventory of USDA food commodities of $916,350. De Minimis Rate Used: N Rate Explanation: The Organization 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 Hawaii Foodbank, Inc. (Organization) and is presented on the accrual basis of accounting. The information in the 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, certain amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements of the Organization.

Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. In addition, agency or pass-through entity identifying numbers are presented where available. The food commodities received from the U.S. Department of Agriculture (USDA) are valued based on management’s estimate of the average wholesale value per pound of food received from the USDA. Management’s estimate is based on the results of a product valuation survey conducted by Feeding America. The value of USDA food commodities distributed during the year includes amounts held in inventory at the beginning of the year. As of June 30, 2024, the Organization had an inventory of USDA food commodities of $916,350. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. In addition, agency or pass-through numbers are presented where available. The food commodities received from the U.S. Department of Agriculture (USDA) are valued based on management’s estimate of the average wholesale value per pound of food received from the USDA. Management’s estimate is based on the results of a product valuation survey conducted by Feeding America. The value of USDA food commodities distributed during the year includes amounts held in inventory at the beginning of the year. As of June 30, 2024, the Organization had an inventory of USDA food commodities of $916,350.

Title: NOTE C – INDIRECT COST RATES Accounting Policies: The expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. In addition, agency or pass-through entity identifying numbers are presented where available. The food commodities received from the U.S. Department of Agriculture (USDA) are valued based on management’s estimate of the average wholesale value per pound of food received from the USDA. Management’s estimate is based on the results of a product valuation survey conducted by Feeding America. The value of USDA food commodities distributed during the year includes amounts held in inventory at the beginning of the year. As of June 30, 2024, the Organization had an inventory of USDA food commodities of $916,350. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.