Audit 309648

Title: 1 Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of North Augusta, South Carolina (the “City”) and is prepared on the accrual basis of accounting. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City did not qualify as a low-risk auditee for the fiscal year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of North Augusta, South Carolina (the “City”) and is prepared on the accrual basis of accounting. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City did not qualify as a low-risk auditee for the fiscal year ended December 31, 2023.

Title: 2 Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of North Augusta, South Carolina (the “City”) and is prepared on the accrual basis of accounting. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City did not qualify as a low-risk auditee for the fiscal year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. NOTE 2. DE MINIMIS INDIRECT COST RATE The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023.