Audit 347856

Title: OTHER DISCLOSURES Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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 limited as to reimbursement. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the Schedule at the fair market value of commodities used, which are amounts provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Eastport-South Manor Central School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.

Title: SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS RECONCILIATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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 limited as to reimbursement. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. Pass-through numbers are presented where available. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system. Non-cash assistance is reported in the Schedule at the fair market value of commodities used, which are amounts provided by New York State under the National School Lunch Program. De Minimis Rate Used: N Rate Explanation: Eastport-South Manor Central School District did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule reflects only those expenditures that are subject to the requirements of the Uniform Guidance, and thus excludes certain items reported in the District's financial statements. For the fiscal year ended June 30, 2024, the District reported $122,078 in surplus food commodities received from the federal government as federal sources revenue in its governmental fund’s financial statements. However, in accordance with the Uniform Guidance, the value of surplus food commodities used during the fiscal year is required to be reported as federal awards expended. Therefore, an adjustment of $5,713 was reflected, resulting in a total of $127,791 reported as non-cash assistance (food distribution) for surplus food commodities used in the National School Lunch Program, ALN: 10.555. Additionally, for the fiscal year ended June 30, 2024, the District received $38,998 in E-Rate funding, which is reported as federal sources revenue in the governmental funds financial statements. However, E-Rate program reimbursements are not classified as federal awards expended in accordance with the Uniform Guidance. The following is a reconciliation of the federal revenues reported in the financial statements to federal awards expended, as reported in the Schedule: