Notes to SEFA
Title: NOTE 1--BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: County has Cost Allocation Plan prepared by MGT in accordance with 2 CFR 200 for determining indirect cost allocation amounts.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Clare County, Michigan (the “County”) under programs of the federal government for the year ended September 30, 2023. The information in this schedule 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). 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. The County’s reporting entity is defined in Note A of the County’s financial statement audit report.
Title: NOTE 2--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: County has Cost Allocation Plan prepared by MGT in accordance with 2 CFR 200 for determining indirect cost allocation amounts.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
Title: NOTE 3--PASS-THROUGH AGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: County has Cost Allocation Plan prepared by MGT in accordance with 2 CFR 200 for determining indirect cost allocation amounts.
The County receives certain federal awards as subgrants from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows:
Title: NOTE 4--RECONCILIATION TO THE FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: County has Cost Allocation Plan prepared by MGT in accordance with 2 CFR 200 for determining indirect cost allocation amounts.
The federal revenue reported in Exhibit D of the County’s financial statements reports revenues of $3,989,876 while the SEFA reports total expenses of $3,977,717. The $12,159 difference is due to unavailable for grant funds not received within 60 days of the end of the fiscal year.