Notes to SEFA
Title: 1. Basis of Presentation
Accounting Policies: See Note 1
De Minimis Rate Used: N
Rate Explanation: The Town doesn't use an indirect cost rate
The accompanying schedule of expenditures of federal and state awards (SEFSA) includes the federal and state grant acitivity of the Town of Canton under programs of the federal government and the State of North Carolina for the year ended June 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act. Because the Schedule only presents a selective portion of the operations of the Town of Canton, it is not intended to and does not present the financial position, change in net assets or cash flows of the Town.
Title: 2. Summary of Signifigant Accounting Policies
Accounting Policies: See Note 1
De Minimis Rate Used: N
Rate Explanation: The Town doesn't use an indirect cost rate
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 the State Single Audit Implementation Act, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
Title: 3
Accounting Policies: See Note 1
De Minimis Rate Used: N
Rate Explanation: The Town doesn't use an indirect cost rate
The Town has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4
Accounting Policies: See Note 1
De Minimis Rate Used: N
Rate Explanation: The Town doesn't use an indirect cost rate
The NC Department of Justice does not consider Opioid Settlement Funds either Federal or State Financial assistance since they are from a settlement with private major drug companies. Since these funds are subject to the State Single Audit Implementation Act, they are reported as "Other Financial Assistance" on the SEFSA, and considered State Awards for State single audit requirements.