Audit 79149

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 Discovery Charter School d/b/a Jacquelyn Y. Kelley Discovery Charter School (the School). 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, 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 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 wherein certain types of expenditures are not allowable or are limited as to reimbursement. The schedule of expenditures of federal and state awards presents only a selected portion of the activities of the School. It is not intended to and does not present the balance sheet, revenue, expenditures, or changes in fund balances of governmental funds. The financial activity for the aforementioned awards is reported in the Schools statement of revenues, expenditures, and changes in fund balances of governmental funds. 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 of expenditures of federal and state awards was subcontracted to other organizations.