Audit 6890

Title: 1. Summary of Significant Accounting Policies: Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs administered by REACH Academy Charter School (the School), an entity as defined in Note 1 to the School’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the School’s financial reporting system. The federal expenditures are recorded on the accrual basis. Indirect Costs The School typically does not allocate indirect costs to federal programs and as such the 10% de minimis indirect cost rate permitted by the Uniform Guidance is not applicable. De Minimis Rate Used: N Rate Explanation: The School typically does not allocate indirect costs to federal programs and as such the 10% de minimis indirect cost rate permitted by the Uniform Guidance is not applicable. Basis of Presentation The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs administered by REACH Academy Charter School (the School), an entity as defined in Note 1 to the School’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the School’s financial reporting system. The federal expenditures are recorded on the accrual basis. Indirect Costs The School typically does not allocate indirect costs to federal programs and as such the 10% de minimis indirect cost rate permitted by the Uniform Guidance is not applicable.