Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State
grant activity of North East Carolina Preparatory School under the programs of the federal government and the State
of North Carolina for the year ended June 30, 2024. The information in this SEFSA is presented in accordance with
the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because
the Schedule presents only a selected portion of the operations of the School, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the School.