Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal andState grant activity of North East Carolina Preparatory School under the programs of the federalgovernment and the State of North Carolina for the year ended June 30, 2022. The information in thisSEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awardsand the State Single Audit Implementation Act. Because the Schedule presents only a selected portion ofthe operations of the School, it is not intended to and does not present the financial position, changes in netposition, or cash flows of the School.Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, wherein certaintypes of expenditures 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.