Audit 7086

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Both Rate Explanation: The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Webster County School District (District) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Both Rate Explanation: The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.

Title: NOTE 3 – SUBRECIPIENTS Accounting Policies: 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Both Rate Explanation: The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%. There were no subrecipients during the fiscal year.

Title: NOTE 4 – INDIRECT COST RATE Accounting Policies: 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Both Rate Explanation: The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%. The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%.

Title: NOTE 5 – COMMODITIES Accounting Policies: 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Both Rate Explanation: The District has elected to use indirect cost rates as defined by the grantor in the following program: Child Nutrition Cluster; The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District’s rate was 17.57%. Nonmonetary assistance is reported in the Schedule at the fair market value of the USDA food commodities received and disbursed.