Audit 41202

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes thefederal expenditures of the CNA Corporation (the Corporation) to perform research and development activities for the Federal Government for the year ended September 30, 2022. The amounts reported as federal expenditures were obtained from the Corporation's general ledger.The information in the Schedule 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 (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. For purposes of the Schedule, federal awards include all contracts, grants, and similar agreements entered into directly between the Corporation and agencies and departments of the Federal Government and all sub-awards to the Corporation by non-federal organizations pursuant to federal contracts, grants and similar agreements. Negative numbers in the Schedule represent adjustments to amounts reported in prior years in the normal course of business. Where full Assistance Listing Numbers are not available, other identifying grants and contract numbers are presented.For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The CNA Corporation utilizes billing rates negotiated with the Office of Naval Research (ONR) and did not elect to use the 10% de minimis rate as covered in ?200.414Indirect (F&A) costs.