Notes to SEFA
Accounting Policies: Note A - Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the
federal award activity of Northwood Academy Charter School (the "School") 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 School, it is not intended to and does not present the balance sheet, revenues,
expenditures, or changes in fund balances of governmental funds. The financial activity for the
aforementioned awards is reported in the School's Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds.
Note B - Summary of Significant Accounting Policies
1. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.