Audit 316334

Title: NOTE 3 ‐ OTHER FEDERAL ASSISTANCE Accounting Policies: Basis of Presentation: The accounting policies of the Town of Vernon, Connecticut, (the Town) conform to accounting principles generally accepted in the United States of America as applicable to governmental organizations. The information in the schedule of expenditures of federal awards 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 of expenditures of federal awards presents only a selected portion of the operations of the Town, it is not intended to, and does not, present the financial position, changes in fund balances, changes in net position or cash flows of the Town. Basis of Accounting: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis consistent with the preparation of the basic financial statements. Certain grants are not dependent on expenditure activity, and accordingly, are considered to be expended in the fiscal year of receipt. These grant program receipts are reflected in the expenditure column of the schedule of expenditures of federal awards. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The Town has no federal awards for which an indirect cost rate is applicable. Amounts of $49,632 and $95,714 have been reflected in the expenditures column in the accompanying schedule of expenditures of federal awards, which represents the fair market value or donated commodities received under the National School Lunch Program and the Fresh Fruits and Vegetables program, respectively, during the year ended June 30, 2023. No other federal assistance was received in the form of loans, loan guarantees or insurance.