Audit 49028

Title: Note A--Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: The Museum has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Kentucky Derby Museum Corporation (the Museum) under programs of the federal government for the year ended September 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 a selected portion of the operations of the Museum, it is not intended to and does not present the financial position, changes in equity, or cash flows of the Museum. The amounts included on the Schedule are based upon the September 30, 2022, Shuttered Venue Operators Grant report, which includes expenditures for the year ended September 30, 2022.

Title: Note D--Summary of Audit Results Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: The Museum has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no instances of noncompliance material to the Schedule of the Museum, which would be required to be reported in accordance with Government Auditing Standards, during the audit. There were no significant deficiencies or material weaknesses relating to the audit of the Museums internal control over its federal award program reported. The auditors report on compliance for the federal award program of the Museum expresses an unmodified opinion. There were no audit findings that are required to be reported in accordance with 2 CFR Section 200.516(a) of the Uniform Guidance. There are no findings or questioned costs relative to the federal award program which are required to be reported in accordance with the Uniform Guidance.