Audit 16223

Accounting Policies: NOTE I.SINGLE AUDIT REPORTING ENTITYFor the purposes of the Schedule of Federal Awards, federal awards include all grants and contracts entered into directly between Addison County Communication Union District (the District) and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories 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).NOTE 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA. Basis of presentation The accompanying Schedule is 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). 1. Federal Award: Pursuant to the Single Audit Act and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), federal award means federal financial assistance and federal cost-reimbursement contracts that non-federal entities receive directly from federal awarding agencies or indirectly from pass-through entities. The Organization receives direct federal awards and awards passed through the State of Vermont.2. Federal Financial Assistance: In the Single Audit Act and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loan guarantees, property, interest, subsidies, insurance, or direct appropriations. Federal financial assistance does not include federal cash payments to individuals.3. Major and Non-Major Programs: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) establishes criteria for determining major programs and selecting those federal programs to be tested for compliance with program requirements. The major programs selected and tested for the District for the year ended December 31, 2022 were: Federal Agency/DepartmentProgramCFDAU.S Department of the TreasuryAct 71 Preconstruction Grant Program21.027U.S Department of the TreasuryAct 71 Construction Grant Program21.027B. Basis of accounting The District receives federal funds under various grant programs and records this activity in the using the basis of accounting of the entity. The District uses full accrual accounting for its organization. The 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 and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Amounts reported in the accompanying schedule agree in all material respects with the amounts reported in the related annual financial statements.C. Sub-recipients Of the federal expenditures presented in the schedule, the District provided no federal awards to sub recipients De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.