Audit 361830

Title: General Information Accounting Policies: The financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As a result, revenues are recognized when earned and expenses are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The Maryland Humanities Council, Inc. has not elected to use the 10% de minimis indirect cost rate for federal contracts allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards presents the activities in all the federal financial assistance programs of the Maryland Humanities Council, Inc. for the year ended October 31, 2024. All financial assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies or nonprofit organizations are included in the schedule. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Council, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Council.

Title: BASIS OF ACCOUNTING Accounting Policies: The financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As a result, revenues are recognized when earned and expenses are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The Maryland Humanities Council, Inc. has not elected to use the 10% de minimis indirect cost rate for federal contracts allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Federal awards expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to the expenditures exceeding grant or contract budget limitations which are not included as federal awards.

Title: INDIRECT COSTS Accounting Policies: The financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As a result, revenues are recognized when earned and expenses are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The Maryland Humanities Council, Inc. has not elected to use the 10% de minimis indirect cost rate for federal contracts allowed under the Uniform Guidance. The Maryland Humanities Council, Inc. has not elected to use the 10% de minimis indirect cost rate for federal contracts allowed under the Uniform Guidance.