Notes to SEFA
Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards summarizes the expenditures of the Arts Centerunder programs of the federal government for the year ended May 31, 2022 and is presented on the accrual basisof accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Codeof Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedulemay differ from amounts presented in, or used in the preparation of, the consolidated financial statements.Note 2 Accounting PrinciplesExpenditures for direct costs are recognized as incurred using the accrual method of accounting and the costaccounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expendituresare not allowable or are limited as to reimbursement.Note 3 ContingenciesThe Associations federal programs are subject to financial and compliance audits by grantor agencies which, ifinstances of material noncompliance are found, may result in disallowed expenditures and affect the Arts Centerscontinued participation in specific programs. The amount, if any, of expenditures which may be disallowed by thegrantor agencies cannot be determined at this time, although the Association expects such amounts, if any, to beimmaterial.Note 4 Indirect Cost RateThe Arts Center did not elect to use the 10% de minimis cost rate under Uniform Guidance 200.510(b)(6).
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.