Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: All Federal grant operations of Cecil County, Maryland (the County) are included in thescope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the SingleAudit or Uniform Guidance) for the year ended June 30, 2022. The Single Audit wasperformed in accordance with the provisions of the U.S. Office of Budget and Management(OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of allrequirements, as described in the Compliance Supplement, was performed for the major grantprogram noted below. The programs on the schedule of expenditures of Federal awards (theSchedule) represent all award programs for fiscal year 2022 cash or non-cash expenditureactivities to ensure coverage of at least 20% of Federally granted funds. Our actual coveragewas 47%.Expenditures reported on the Schedule are recognized following the cost principles containedin Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The County has electednot to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule includes the federal award activity of the County underprograms of the federal government for the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 assets, or cash flows of the County.