Audit 4751

Accounting Policies: 1 - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Massachusetts Education and Career Opportunities, Inc. (“MassEdCO”) under programs of the federal government for the year ended June 30, 2023. The information in this 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). Because the Schedule presents only a selected portion of the operations of MassEdCO, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MassEdCO. For the purposes of the Schedule, federal awards include all federal financial assistance received directly or indirectly through contracts executed with the Commonwealth of Massachusetts. 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Indirect cost rate Due to U.S. Department of Education regulations, MassEdCO uses a negotiated indirect cost rate rather than the 10% de minimis rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Due to U.S. Department of Education regulations, MassEdCO uses a negotiated indirect cost rate rather than the 10% de minimis rate allowed under the Uniform Guidance.