Title: NOTE 3 NONCASH AWARDS
Accounting Policies: NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Town of Lebanon, Connecticut, under programs of the federalgovernment for the year ended June 30, 2022. The information in the Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of the Town ofLebanon, Connecticut, it is not intended to, and does not, present the financial position,changes in fund balance, changes in net position or cash flows of the Town of Lebanon,ConnecticutBasis of AccountingExpenditures reported on the Schedule are reported using the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance for all awards. Under these principles certain types of expenditures arenot allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Donated commodities in the amount of $26,881 are included in the Department ofAgricultures National School Lunch Program, Assistance Listing #10.555. The amountrepresents the market value of commodities received
Title: NOTE 4 PRIOR LOAN AND LOAN GUARANTEES (LOANS)
Accounting Policies: NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Town of Lebanon, Connecticut, under programs of the federalgovernment for the year ended June 30, 2022. The information in the Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of the Town ofLebanon, Connecticut, it is not intended to, and does not, present the financial position,changes in fund balance, changes in net position or cash flows of the Town of Lebanon,ConnecticutBasis of AccountingExpenditures reported on the Schedule are reported using the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance for all awards. Under these principles certain types of expenditures arenot allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Town of Lebanon, Connecticut has the following loan balance outstanding as June 30,2022, with the United States Department of Agriculture. The outstanding loan balance wasnot included in the accompanying schedule of expenditures of federal awards in accordancewith 2 CFR Section 200.205 of the Uniform Guidance, the basis for determining federalawards expended. There are currently no continuing compliance requirements relating tothis loan other than repayment of the loan. The original balance of the loan was $5,105,000,during 2022 the Town repaid $107,659, and at June 30, 2022 the outstanding balance is$3,721,326.