Audit 357234

Title: NOTE 3 - PROGRAM COSTS Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Reardan-Edwall School District’s financial statements. The Reardan-Edwall School District uses the cash 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 INDIRECT RATE The Reardan-Edwall School District used the federal restricted rate of up to 5.87% for all federal grants except the ESSER_CARES grant. For the ESSER_CARES grant, the District used the unrestricted federal indirect rate of up to 24.80%. The Reardan-Edwall School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts shown as of current year expenditures represent only the federal grant portion of the program expenditures. Entire program costs, including the District's local matching share, may be more than shown. Such expenditures are recognized following cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein curtain 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 Reardan-Edwall School District’s financial statements. The Reardan-Edwall School District uses the cash 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 INDIRECT RATE The Reardan-Edwall School District used the federal restricted rate of up to 5.87% for all federal grants except the ESSER_CARES grant. For the ESSER_CARES grant, the District used the unrestricted federal indirect rate of up to 24.80%. The Reardan-Edwall School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount of commodities reported on the schedule is the value of commodities distributed by the Reardan-Edwall School District during the current year and priced as prescribed by United States Department of Agriculture (USDA).

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 Reardan-Edwall School District’s financial statements. The Reardan-Edwall School District uses the cash 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 INDIRECT RATE The Reardan-Edwall School District used the federal restricted rate of up to 5.87% for all federal grants except the ESSER_CARES grant. For the ESSER_CARES grant, the District used the unrestricted federal indirect rate of up to 24.80%. The Reardan-Edwall School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 5—SCHOOLWIDE PROGRAMS The Reardan-Edwall School 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 Reardan-Edwall School District in its schoolwide program: Title I (84.010) $239,064.