Audit 364200

Title: NOTE 1—BASIS OF ACCOUNTING Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 uses the mod 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 La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Co School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 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.

Title: NOTE 2—FEDERAL INDIRECT RATE Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 uses the mod 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 La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Co School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Conner School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.

Title: NOTE 3—NONCASH AWARDS Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 uses the mod 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 La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Co School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The amount of commodities reported on the schedule is the value of commodities distributed by the La Conner School District No. 311 during the current year and priced as prescribed by OSPI Washington Child Nutrition Program.

Title: NOTE 4—SCHOOLWIDE PROGRAMS Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 uses the mod 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 La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Co School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The La Conner School District No. 311 operates a “schoolwide program” in one elementary building, on middle school building, and one high school 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 La Conner School District No. 311 in its schoolwide program: Migrant Education (84.011) $101,321.

Title: NOTE 5—PROGRAM COSTS/MATCHING CONTRIBUTIONS Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the La Conner School District No. 311 financial statements. The La Conner School District No. 311 uses the mod 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 La Conner School District No. 311 used the federal restricted rate of 4.54%. The La Conner School Di No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The La Conner School District No. 311 used the federal unrestricted rate of 20.16%. The La Co School District No. 311 has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the La Conner School District No. 311 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 principle 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.