Audit 348695

Title: NOTE 4 - RECONCILIATION OF EXPENSES Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of National Endowment for Democracy (the Endowment) under programs of the federal government for the year ended September 30, 2024. 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Endowment, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Endowment. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 3 - INDIRECT COST RATE The Endowment has not elected to use the 10% de minimus indirect cost rate per CFR 200.414 as allowed under the Uniform Guidance. A reconciliation of total expenditures as listed in the schedule of expenditures of federal awards to expenses listed on the statement of activities is as follows: See the Notes to the SEFA for chart/table. A reconciliation of total federal grant program expenses as listed on the statement of functional expenses to the grants obligated, federal, is as follows: See the Notes to the SEFA for chart/table.