Audit 35012

Accounting Policies: A. Reporting Entity - The accompanying schedule includes all federal award programs of the School Unit for the fiscal year ended June 30, 2022. The reporting entity is defined in Notes to Basic Financial Statements of Regional School Unit #74. B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the Uniform Guidance. 1. Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs - the Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the School Unit have been identified in the attached Schedule of Findings and Questioned Costs Summary of Auditors Results. C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on a modified accrual basis of accounting, which is a basis consistent with the School Unit's fund financial statements. The grants included are all accounted for on a modified accrual basis of accounting as described in the notes to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.