Audit 354204

Title: Note 3 – Program Costs/Matching Contributions Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.86% and the federal unrestricted rate of 15.72%. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Nine Mile Falls School District’s local matching share, may be more than shown. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Note 4 – Noncash Awards Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.86% and the federal unrestricted rate of 15.72%. The amount of commodities reported on the Schedule is the value of commodities distributed by the Nine Mile Falls School District during the current year and priced as prescribed by the USDA.

Title: Note 5 – Schoolwide Programs Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.86% and the federal unrestricted rate of 15.72%. The Nine Mile Falls School District operates a “schoolwide program” in one of its elementary buildings. Using federal funding, schoolwide programs are designed to upgrade an entire educational program within a school for all students, rather than limit services to certain targeted students. The following federal program amounts were expended by the Nine Mile Falls School District in its schoolwide program: Title I (84.010) $460,844.05.

Title: Note 6 – Transferability Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.86% and the federal unrestricted rate of 15.72%. As allowed by federal regulation, the Nine Mile Falls School District elected to transfer program funds. The district expended $28,959.00 from its Title IV, Part A Student Support and Academic Enrichment Program (84.424) on allowable activities of the Title II, Part A Supporting Effective Instruction State Grants (84.367). This amount is reflected in the expenditures of Title II, Part A Supporting Effective Instruction State Grants (84.367).

Title: Note 7 – Payment for Expenditures Incurred in a Prior Year Accounting Policies: Note 1 – Basis of Accounting This Schedule is prepared on the same basis of accounting as the Nine Mile Falls School District’s financial statements. The Nine Mile Falls School District uses the modified accrual basis of accounting. Expenditures represent only the federally funded portions of the program. District records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: Note 2 – Federal De Minimis Indirect Cost Rate The Nine Mile Falls School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The district used the federal restricted rate of 3.86% and the federal unrestricted rate of 15.72%. The district incurred eligible expenditures $1,816.27 in FY21 and FY22 and FEMA approved the district’s Project Worksheet in FY24. The FEMA claim was then paid in March 2024 of the FY24. The expenditures reflected on the FY24 SEFA were incurred in prior years.