Notes to SEFA
Accounting Policies: The schedule of expenditures of federal and state awards (SEFSA) includes the state and federal grant activity of The Franklin Academy, Inc. and is presented on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this SEFSA 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 and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of The Franklin Academy, Inc., it is not intended to and does not present the financial position, changes in net position or cash flows of The Franklin Academy, Inc.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.