Audit 365723

Title: Basis of Presentation Accounting Policies: Basis of Accounting The Schedule includes the federal activity of the Conservancy and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements. The Conservancy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Valuation of Non-cash Programs The Conservancy values revenues and expenditures for the programs based on the direct payments made by the federal government. De Minimis Rate Used: N Rate Explanation: The Conservancy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Hill Country Conservancy (the “Conservancy”) 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 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 Conservancy, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Conservancy.

Title: Summary of Significant Accounting Policies Accounting Policies: Basis of Accounting The Schedule includes the federal activity of the Conservancy and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements. The Conservancy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Valuation of Non-cash Programs The Conservancy values revenues and expenditures for the programs based on the direct payments made by the federal government. De Minimis Rate Used: N Rate Explanation: The Conservancy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Basis of Accounting The Schedule includes the federal activity of the Conservancy and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements. The Conservancy has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Valuation of Non-cash Programs The Conservancy values revenues and expenditures for the programs based on the direct payments made by the federal government.