Audit 47409

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. The Schools expenditures for capital assets are reported entirely in the year ofpurchase.The School has elected not to use the ten percent de minimis cost rate allowed under 2 CFR ?200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Leading Edge Academy Queen Creek(the School) 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). Because the Schedule presents only portions of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School.

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement. The Schools expenditures for capital assets are reported entirely in the year ofpurchase.The School has elected not to use the ten percent de minimis cost rate allowed under 2 CFR ?200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School did not pass any funds on to subrecipients during the year ended June 30, 2022.