Audit 49333

Title: Reconciliation of Federal Program Revenues and SFA Accounting Policies: 1.Basis of Presentation - The accompanying schedule of expenditures of federal awards includes the Federal award activity of CityScape Schools, Inc. (the School) and is presented on the accrual basis of accounting. The information in the 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 operation of the School, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the School. 2. Summary of Significant Accounting Policies - Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of 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 auditee did not use the de minimis cost rate. Reconciliation of Federal Program Revenues and Schedule of Expenditures of Federal Awards: Total expenditures of federal awards per the Schedule of Expenditures of Federal Awards $4,171,161 SHARS revenue $74,479 Total federal program revenues per the Statement of Activities $4,245,640.