Audit 42740

Accounting Policies: Note 1 Summary of Certain Significant Accounting PrinciplesThe accompanying schedule of expenditures of federal awards presents the activity of federal award programsadministered by the District, which is described in Note 2 to the District's accompanying financial statements,using the modified accrual basis of accounting. Federal awards that are included in the schedule may be receiveddirectly from federal agencies, as well as federal awards that are passed through from other governmentagencies. The information is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the financial statements. Note 2 Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grantactivity of Arkport Central School District and presented on the accrual basis of accounting. The information in thisschedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amountspresented in this schedule may differ from amounts presented in or used in the preparation of the basic financialstatements. Federal grants received by the District are subject to audit and adjustment. If any expenditure isdisallowed by the grantor agencies as a result of such audit, the grantor agencies could make claims toreimbursement, which would become a liability of the District.Various reimbursement procedures are used for Federal Awards received by the District. Consequently, timingdifferences between expenditures and program reimbursements can exist at the beginning and end of the year.Accrued balance at year end represent an excess of expenditures over cash reimbursements received to date.Deferred balances at year end represent an excess of cash reimbursements received over reimbursableexpenditures to date. Generally, accrued, or deferred balances are caused by differences in the timing of cashreimbursements and expenditures and will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.