Audit 57321

Title: Subrecipient Funding Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) presents activities of the federal and state awards programs of Harambee Institute of Science and Technology Charter School, Inc. All federal financial assistance passed through other governmental agencies or other nonprofit organizations, is included in the schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. 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, whereincertain types of expenditures are not allowable or are limited as to reimbursement. The expenditures reported in the basic financial statements may differ from the expenditures reported on the Schedule of Expenditures of Federal and State Awards due to program expenditures exceeding grant or contract budget limitations, which are not included as federal financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No portion of the awards reflected in the accompanying Schedule was subcontracted to other organizations.