Audit 366038

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years. De Minimis Rate Used: Y Rate Explanation: The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the State Bar of California (State Bar) under programs of the federal government for the year ended December 31, 2024. The information in the 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). As a result of the COVID-19 pandemic, new federal programs have been established and funding has been added to existing federal programs. Expenditures funded from the following acts, as applicable, are denoted by the prefix COVID-19 in the federal program title in the Schedule: • Coronavirus Preparedness and Response Supplemental Appropriations Act (CPRSA) • Families First Coronavirus Response Act (FFCRA) • Coronavirus Aid, Relief, and Economic Security Act (CARES Act) • Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) • American Rescue Plan Act (ARP)

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years. De Minimis Rate Used: Y Rate Explanation: The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414. Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years.

Title: NOTE 3 – PASS-THROUGH AWARDS Accounting Policies: Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years. De Minimis Rate Used: Y Rate Explanation: The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414. The State Bar receives federal awards from pass-through agencies. The total amount of such pass-through awards is included on the Schedule.

Title: NOTE 4 – INDIRECT COST RATE Accounting Policies: Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years. De Minimis Rate Used: Y Rate Explanation: The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414. The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414.

Title: NOTE 5 – PASS-THROUGH TO SUBRECIPIENTS Accounting Policies: Expenditures reported in the accompanying Schedule are 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 as to reimbursement. Negative amounts shown in the Schedule represent repayment of relinquished grant funds in the normal course of business to amounts reported as expenditures in the prior years. De Minimis Rate Used: Y Rate Explanation: The State Bar has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414. The State Bar provided the following federal awards to subrecipients during the year ended December 31, 2024. Negative amounts represent adjustments made in the normal course of business, including repayment of relinquished grant funds, to amounts reported as expenditures in prior years.