Notes to SEFA
Accounting Policies: TheaccompanyingScheduleofExpendituresofFederalAwardsincludesthefederalawardactivityofMaterAcademyCentral,Inc.("theOrganization")duringitsfiscalyearJuly1,2021throughJune30,2022.TheinformationinthisscheduleispresentedinaccordancewiththerequirementsofTitle2U.S.CodeofFederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards(UniformGuidance).BecausetheschedulepresentsonlyaselectedportionoftheoperationsoftheOrganization,itisnotintendedtoanddoesnotpresentthefinancial position, changes in net assets or cash flows of the Organization. Expendituresontheschedulearereportedontheaccrualbasisofaccounting.Someamountspresentedinthisschedulemaydifferfromamountspresentedinorusedinthepreparationofthebasicfinancialstatements.TheOrganizationhaselectedtonotusethe10%deminimisindirectcostrateallowedundertheUniformGuidance. Thegrantrevenueamountsreceivedaresubjecttoauditandadjustment.Ifanyexpendituresaredisallowedbythegrantoragencyasofresultofsuchaudit,anyclaimforreimbursementtothegrantoragencieswouldbecomealiabilityoftheOrganization.Intheopinionofmanagement,allgrantexpendituresareincompliancewiththetermsofthegrantagreementsandapplicablefederalandstatelaws and regulations.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.