Audit 48509

Title: Awards with Negative Values Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the International Republican Institute (IRI) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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. De Minimis Rate Used: N Rate Explanation: As of the date of this report, IRI has finalized rates through fiscal year 2020, and has been given provisional rates for fiscal year 2021, and onward, until amended. Based on the final approval rates through 2020, IRI has updated all grants accordingly. As such, IRI has elected to not use the 10% de minimis indirect rate as allowed under the Uniform Guidance. 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. Several of IRIs awards with federal agencies had negative values for the year ended September 30, 2022. The primary reasons for the negative balances are due to indirect rate adjustments, liquidations of project holder advances, corrections of prior year mis-postings, reclassification of disallowed costs and foreign currency fluctuations.