Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") presents the activity of all federal award programs of the Town of Hilton Head Island, South Carolina (the "Town") for the year ended June 30, 2022. Expenditures for federal financial assistance awarded directly from the federal agencies, as well as those passed through other government agencies, are included on the Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting, which is described in the notes to the Town's financial statements. Federal award expenditures are reported in the Town's financial statements as expenditures in the special revenue funds for all federal programs. Matching costs, i.e., the non-federal share of certain program costs, are not included in the accompanying Schedule. There were no federal awards disbursed to subrecipients during the year.
De Minimis Rate Used: N
Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.