Audit 37032

Accounting Policies: A. Summary of Significant Accounting PoliciesBasis of PresentationThe accompanying schedule of expenditures of federal awards (the "Schedule") includes thefederal award activity of the Linden City Board of Education under programs of the federalgovernment for the year ended September 30, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U. S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles and Audit Requirementsfor Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the Linden City Board of Education, it is not intended ~o and doesnot present the financial position or changes in net position of the Linden City Board ofEducation.Basis of AccountingExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance wherein certain types of expenditures are not allowed or are limited as toreimbursement. The Linden City Board of Education did not elect to use the 10-percent deminimis indirect cost rate as allowed in the Uniform Guidance.Indirect Cost RateThe Linden City Board of Education did not elected to use the 10-percent de minimis indirectcost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rateapproved by the State of Alabama Department of Education.Non-Cash AssistanceThe Board is the recipient of certain non-cash assistance in the form of donated commoditiesreceived from the U.S. Department of Agriculture. Revenues and expenditures are recorded forthe value of commodities received. De Minimis Rate Used: N Rate Explanation: The Linden City Board of Education did not elected to use the 10-percent de minimis indirectcost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rateapproved by the State of Alabama Department of Education.