Audit 36497

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Franklin Phonetic Primary School, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with requirements of 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 Franklin Phonetic Primary School, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Franklin Phonetic Primary School, Inc.A)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.