Audit 353877

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Mercer County Educational Service Center (the Service Center’s) under programs of the federal government for the fiscal year ended June 30, 2024. The information on this Schedule is prepared 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 Service Center, it is not intended to and does not present the financial position or changes in net position of the Service Center.

Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.

Title: Note C - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note D - Federal Awards Administered for Other Governments Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Service Center applies for and administers grants on behalf of member school districts. The Service Center reports these grants on their Schedule of Expenditures of Federal Awards and they are subject to audit during the Service Center’s annual audit according to the Uniform Guidance. Awards which are reported by the Service Center which benefit member districts are as follows: District Award Amount IDEA Part B Award Amount IDEA Early Childhood Coldwater Exempted Village School District $14,174 Fort Recovery Local School District $205,805 $8,631 Marion Local School District $204,416 $8,317 Parkway Local School District $8,742 St. Henry Consolidated Local School District $209,158 $48,832 Total $619,379 $48,832

Title: Note E - Administrative Agent Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Service Center has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Service Center is the Administrative Fiscal Agent for the RemotEDx Support Squad. In this capacity, the Service Center is guided by a program cabinet to maintain and fulfill the contracts associated with this work which is to provide schools and districts with deep technical support and high-quality job-embedded professional learning opportunities specific to remote, hybrid, and blended learning and education (AL #84.425U). During this fiscal year, the Service Center expended $855,513. The Service Center is not eligible to charge any administrative fee to this grant; however, they were approved to charge indirect costs.