Audit 44163

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported according to the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein some types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization does not use the 10% de minimis indirect rate allowed in the Uniform Guidance, section 414. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal grant activity of The Kentucky Center of the Arts Corporation d.b.a. Kentucky Performing Arts under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. We have audited the financial statements of the Kentucky Center of the Arts Corporation as of and for the year ended June 30, 2022. The financial statements include the Kentucky Center for the Art Foundation, Inc., a component unit. Our audit of compliance, which follows, only includes the federal grant activity of the Kentucky Center of the Arts Corporation because the component unit would not be subject to the Uniform Guidance on an individual basis.