Audit 346232

Title: Summary of significant accounting policies Accounting Policies: Basis of presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activities in all the Federal programs of Literacy, Inc. (“LINC”) and is presented on the accrual basis of accounting. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of LINC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of LINC. De Minimis Rate Used: N Rate Explanation: LINC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Basis of presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activities in all the Federal programs of Literacy, Inc. (“LINC”) and is presented on the accrual basis of accounting. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of LINC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of LINC. Indirect cost rate LINC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.