Audit 18321

Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the Town, an entity as defined in Note 1 to the Town's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information 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). The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. Note 3 Indirect Costs Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Town has not elected to use the 10% de minimus cost rate. Note 4 Matching Costs Matching costs, i.e., the Town's share of certain program costs, are not included in the reported expenditures. Note 5 Subrecipients No amounts were provided to subrecipients. Note 6 Other Disclosures No insurance is carried specifically to cover equipment purchased with Federal Funds. Any equipment purchased with Federal Funds has only a nominal value and is covered by the Towns casualty insurance policies. Note 7 Prior Year Expenditures During the year ended December 31, 2022, the Town recorded expenditures of $17,060 under the (COVID-19) Disaster Grants - Public Assistant (Presidentially Declared Disasters) Program (ALN #97.036), of this amount $13,681 represented expenditures incurred in a prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.