Audit 39687

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of Virginia Tech Applied Research Corporation (VT-ARC) for the year ended June 30, 2022. All federal awards received directly and indirectly from federal agencies are included in this Schedule. The information in the Schedule is presented in accordance with 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The accompanying Schedule is presented using the accrual basis of accounting. Expenditures for federal awards are recognized as incurred using the cost accounting principles contained in the Uniform Guidance, or as specified under the grant agreement. Under these cost principles, certain types of expenses are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.