Audit 365557

Title: RECONCILIATION OF SCHEDULE OF FEDERAL EXPENDITURES TO STATEMENT OF ACTIVITIES Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Institute for Market Transformation, Inc. (the Institute), under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Institute, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Institute. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, wherein certain types of expenditures are not allowable or are limited as to reimbursements. De Minimis Rate Used: N Rate Explanation: The Institute has not elected to use the 10 percent (or 15 percent for grants awarded or amended after October 1, 2024) de minimis indirect cost rate as allowed under the Uniform Guidance. Instead, the Institute uses a negotiated predetermined indirect cost rate agreement of 22.75% with the U.S. Department of Energy. The financial statements of the Institute are presented in accordance with U.S. generally accepted accounting principles. Expenditures per the schedule of expenditures of federal awards are reproted on the statement of activities in the audited financial statements as follows: