Audit 356934

Title: NOTE 3 – PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Eastmont School District’s financial statements. The Eastmont 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 Eastmont School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Eastmont School District used the federal restricted rate of 3.72%. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the Eastmont School District’s local matching share, may be more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or 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: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Eastmont School District’s financial statements. The Eastmont 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 Eastmont School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Eastmont School District used the federal restricted rate of 3.72%. The amount of commodities reported on the schedule is the value of commodities distributed by the Eastmont School District during the current year as priced and prescribed by the USDA in their Annual Statement of USDA Commodities Shipped (OSPI Report ID: FDP032-valueCommodititesShipped)

Title: NOTE 5 – SCHOOLWIDE PROGRAMS Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Eastmont School District’s financial statements. The Eastmont 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 Eastmont School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Eastmont School District used the federal restricted rate of 3.72%. The Eastmont School District operates a “schoolwide program” in six buildings that serve students enrolled in Kindergarten through Sixth grades. 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 Eastmont School District in its schoolwide program: Title I Grants to Local Educational Agencies (84.010) $1,441,553.26.

Title: NOTE 6- TRANSFERABILITY Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Eastmont School District’s financial statements. The Eastmont 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 Eastmont School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Eastmont School District used the federal restricted rate of 3.72%. As allowed by federal regulations, the Eastmont School District elected to transfer program funds. The district expended $107,152 from Student Support and Academic Enrichment Program (84.424) on allowable Title I, Part A Grants to Local Educational Agencies (84.010). This amount is reflected in Title I, Part A Grants to Local Educational Agencies (84.010).