Audit 356039

Title: NOTE 3—PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: NOTE 1—BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Pomeroy School District's financial statements. The Pomeroy 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 RATE The 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/unrestricted) rate of 5.95 / 27.32%. The amounts shown as current year expenses represent only the federal award portion of the program costs. Entire program costs, including the 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 Requirements, 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 The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Pomeroy School District's financial statements. The Pomeroy 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 RATE The 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/unrestricted) rate of 5.95 / 27.32%. The amount of USDA Commodities reported on the schedule is the value of commodities distributed by the Pomeroy School District during the current year and priced as prescribed by OSPI.

Title: NOTE 5—SCHOOLWIDE PROGRAMS Accounting Policies: NOTE 1—BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Pomeroy School District's financial statements. The Pomeroy 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 RATE The 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/unrestricted) rate of 5.95 / 27.32%. The district operates a “schoolwide program” in one elementary building. 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 district in its schoolwide program: Title I (84.010) $105,149; Special Education (84.027) $83,291; Special Education (84.173) $3,723; Title II, Part A (84.367) $13,443; Title IV, Part A (84.424) $10,000.

Title: NOTE 6—SMALL RURAL SCHOOLS ACHIEVEMENT (SRSA) Accounting Policies: NOTE 1—BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Pomeroy School District's financial statements. The Pomeroy 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 RATE The 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/unrestricted) rate of 5.95 / 27.32%. As allowed by federal regulations, the district expended $20,293.08 from its Small Rural Schools Achievement (SRSA) Alternative Uses of Funds Program (84.358) for activities of the Student Support and Academic Achievement Enrichment Program (84.424). This amount is reflected in the expenditures of 84.424.