Title: Summary of Significant Accounting Policies
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia.
Title: Basis of Accounting
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
Title: Pass-through Entity Identifying Numbers
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
Pass-through entity identifying numbers are presented where available.
Title: Indirect Cost Rate
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
Title: Loans and Loan Guarantees
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
The Town did not have any loans or loan guarantees which are subject to reporting requirements for the current year.
Title: Subrecipients
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
The Town did not have any subrecipients during the fiscal year.
Title: Relationship to the Financial Statements
Accounting Policies: Summary of Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Hillsville,
Virginia, under programs of the federal government for the year ended June 30, 2023. The information in the 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 Town of Hillsville, Virginia, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Town of Hillsville, Virginia. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting,
which is described in Note 1 to the Town’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Town did not elect to use the 10 percent de minimis indirect cost rate because they only request direct costs for
reimbursement.
Federal expenditures, revenues and capital contributions are reported in the Town’s basic financial statements as follows: See the Notes to the SEFA for chart/table.