Audit 398581

a. Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) has been prepared 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). The purpose of the Schedule is to present a summary of those activities of Sherburne Area Local Development Corporation (Corporation) funded by the federal government or pass-through entities for the year ended December 31, 2025, using the accrual basis of accounting. For purposes of this Schedule, federal awards include assistance provided by a federal agency, directly or indirectly, in the form of grants, contracts, cooperative agreements, loans and loan guarantees, and other noncash assistance. Negative amounts, if any, on the Schedule represent adjustments made to prior-year expenditures in the normal course of business. b. Relationship to Financial Statements Federal award revenues are reported in the Corporation’s financial statements as grant income. The Corporation’s financial statements are presented using the accrual basis. The Schedule presents only a selected portion of the activities of the Corporation. It is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Corporation. c. Direct and Indirect Costs Expenditures for direct and indirect costs are recognized as incurred using the accrual method of accounting and in accordance with Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations and the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has not elected to use the 15% de minimis indirect cost rate allowed under the Uniform Guidance.

There were no federal awards expended in the form of noncash assistance by the Corporation during the year ended December 31, 2025.