Audit 12722

Title: Scope of Audit Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the full accrual basis of accounting used by the Town in preparation of the government wide financial statements that report these awards. The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule of Expenditures of Federal Awards in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The audit was performed pursuant to the Single Audit Act of 1996 and the Uniform Guidance. Summary of significant accounting policies: The Schedule of Expenditures of Federal Awards has been prepared on the full accrual basis of accounting used by the Town in preparation of the government wide financial statements that report these awards. The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule of Expenditures of Federal Awards in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates.

Title: Disbursements Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the full accrual basis of accounting used by the Town in preparation of the government wide financial statements that report these awards. The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule of Expenditures of Federal Awards in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Disbursements reported in the Schedule of Expenditures of Federal Awards cannot be traced, in every case, directly to the disbursements reported in the Town’s Financial Report. However, the detailed information regarding the disbursements reflected in both issued reports can be traced to the Town’s detailed general ledger with adjustments for any year-end financial statement accruals and reversals. Disaster Grants Public Assistance 97.036 - According to the 2023 Compliance Supplement, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project Worksheet and (2) the nonfederal entity has incurred the eligible expenditures.

Title: Schedule of Expenditures of Federal Awards Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the full accrual basis of accounting used by the Town in preparation of the government wide financial statements that report these awards. The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule of Expenditures of Federal Awards in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the Town that were received directly from federal agencies or passed through other entities and governmental agencies.

Title: Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the full accrual basis of accounting used by the Town in preparation of the government wide financial statements that report these awards. The accounting policies of the Town conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule of Expenditures of Federal Awards in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The Town did not elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.