Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activityof The Capitol Encore Academy under the programs of the federal government and the State of North Carolina for the yearended June 30, 2022. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of theoperations of the School, it is not intended to and does not present the financial position, changes in net position, or cashflows of the School. Note 2: Summary of Significant Accounting PoliciesExpenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.