Audit 38900

Title: Note 3: Change in Reporting Basis Accounting Policies: Expenditures reported on the Schedule are reported on the basis of cash receipts anddisbursements, which is a basis of accounting other than U.S. generally accepted accountingprinciples. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Henderson, Knox, Mercer, and Warren Counties Regional Office of EducationNo. 33 has elected not to use the 10-percent de minimis indirect cost rate allowed under theUniform Guidance De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the fiscal year ended June 30, 2022, the Henderson, Knox, Mercer, and Warren Counties Regional Office of Education No. 33 has presented the Schedule in accordance with the cash basis of accounting. This is a change from the fiscal year 2021 presentation, which was reported using generally accepted accounting principles (GAAP). The following federal expenditures reported in the fiscal year 2022 cash basis financial statements are excluded in the fiscal year 2022 cash basis Schedule as they were already reported in the fiscal year 2021 Schedule on an accrual basis: Federal Adult Education Basic, 84.002, $7,920; Federal Adult Education - EL Civics, 84.002, $1,080; McKinney Education for Homeless Children, 84.196A, $2,096; Title IV 21st Century Community Learning Centers (4421 - 13), 84.287C, $16,877; Title IV 21st Century Community Learning Centers (4421 - 15), 84.287C, $20,930; Title IV 21st Century Community Learning Centers (4421 - 19), 84.287C, $59,651; and Governor's Emergency Education Relief, 84.425C, $7,721.