Audit 356140

Title: Basis of Accounting Accounting Policies: This Schedule is prepared on the same basis of accounting as the Lake Chelan School District’s financial statements. The Lake Chelan 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: The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance This Schedule is prepared on the same basis of accounting as the Lake Chelan School District's financial statements. The Lake Chelan School District uses the modified accrural basis of accounting. Expenditures represent only the federally funded portions of the program. DIstrict records should be consulted to derermine amounts expended or matched from non-federal resources.

Title: Federal De Minimis Indirect Rate Accounting Policies: This Schedule is prepared on the same basis of accounting as the Lake Chelan School District’s financial statements. The Lake Chelan 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: The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Federal Indirect Rate Accounting Policies: This Schedule is prepared on the same basis of accounting as the Lake Chelan School District’s financial statements. The Lake Chelan 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: The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The Lake Chelan School District used the federal restricted rate of 4.36% and unrestricted federal rate of 17.34% & 17.34% on ESSER III funds.

Title: School Wide Programs Accounting Policies: This Schedule is prepared on the same basis of accounting as the Lake Chelan School District’s financial statements. The Lake Chelan 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: The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The Lake Chelan School District operates a “schoolwide program” in one 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 Lake Chelan School District in its schoolwide program: Title I (84.010) $260,752.65

Title: Transferability Accounting Policies: This Schedule is prepared on the same basis of accounting as the Lake Chelan School District’s financial statements. The Lake Chelan 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: The Lake Chelan School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance As allowed by federal regulations, the Lake Chelan School District elected to transfer program funds. The district expended ($2,019.00) from its (Title IV, Part A Supporting Effective Instruction State Grant (84.367) on allowable activities of the (Title III, Part A, English Language Acquisition State Grants (84.365)