Audit 50338

Title: INDIRECT COST Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Youth Empowerment Services, Inc. under programs of the federal governments for the year ended August 31, 2022, for Youth Empowerment Services, Inc. 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 Youth Empowerment Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Youth Empowerment Services, Inc. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Teacher Incentive Fund The Corporation has an approved indirect cost rate of 16.34% with grantors and has elected not to draw the 10% de minimum indirect cost rate allowed in the Uniform Guidance, section 414. Teacher and School Leader The Corporation has an approved indirect cost rate of 3.35% with grantors and has elected not to draw the 10% de minimum indirect cost rate allowed in the Uniform Guidance, section 414. Direct and Indirect expenses for the year ending August 31, 2022 are as follow: Teacher Incentive fund Direct Expense $ 5,477,474 and Indirect Expense $1,025,873 Totaling $6,503,347. Teacher and School Leader Incentive Program $126,621 and Indirect Expense $4,395 Totaling $ 131,016.