Audit 55575

Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of LEADS and Subsidiaries under programs of the federal government for the year ended March 31, 2022. 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). Since the Schedule presents only a selected portion of the operations of LEADS and Subsidiaries, it is not intended to and does not present LEADS and Subsidiaries financial position, change in net assets, or cash flows. Summary of Significant Accounting Policies: (a) 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. (b) LEADS and Subsidiaries has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (c) Pass-through entity identifying numbers are presented where available. (d) The outstanding balance of loan and loan guarantee programs as of March 31, 2022 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule of expenditures of federal awards was $2,374,737. (e) There were no sub-recipients for the year ended March 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.