Notes to SEFA
Accounting Policies: NOTE 1 REPORTING ENTITY The schedule of expenditures of federal awards presents the activities of federal award programs expended by Mower County. The County's reporting entity is defined in Note 1 to the financial statements. NOTE 2 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the County under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirement 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 County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principal contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The County has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 RECONCILIATION TO SCHEDULE OF INTERGOVERNMENTAL REVENUE Federal Grant Revenue Per Schedule of Intergovernmental Revenue $12,886,958 Revenues included on the Schedule of Intergovernmental Revenue that are not considered Federal Grant Expenditures (Prior Year Deferred Inflows of Resources) (246,792) Expenditures above, not included as revenues on the Schedule of Intergovernmental Revenues (Current Year Deferred Inflows of Resources) 19,815 Expenditures per Schedule of Expenditures of Federal Awards $12,659,981
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.