Notes to SEFA
Title: Note 3 Contingency
Accounting Policies: Note 1 Summary of Significant Accounting PoliciesThe accompanying schedule of expenditures of federal awards includes the federal grant activities of ThePepin Academies, Inc. (Pepin). The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the schedule presents only a selected portion of the operations of Pepin, it is not intended to anddoes not present the financial position, changes in net assets, or cash flows of Pepin.Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Pepin has elected not to use the 10% de minimis cost rate allowed by the Uniform Guidance.
Expenditures incurred by Pepin are subject to audit and possible disallowance by federal agencies.Management believes that, if audited, an adjustment for disallowed expenses would be immaterial.