Audit 317795

Title: Basis of Presentation Accounting Policies: Accrual Basis of Accounting De Minimis Rate Used: N Rate Explanation: The County chooses to use the cost allocation plan. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the County of Gladwin, Michigan under programs of the federal government for the nine months ended September 30, 2023. The information in this 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 County of Gladwin, Michigan, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County of Gladwin, Michigan.

Title: Summary of Significant Accounting Policies Accounting Policies: Accrual Basis of Accounting De Minimis Rate Used: N Rate Explanation: The County chooses to use the cost allocation plan. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Cognizant Agency Accounting Policies: Accrual Basis of Accounting De Minimis Rate Used: N Rate Explanation: The County chooses to use the cost allocation plan. The County has not been assigned a cognizant agency. Therefore, the County is under the general oversight of the U.S. Department of Treasury which provided the greatest amount of direct federal funding to the County during 2023.

Title: Indirect Cost Accounting Policies: Accrual Basis of Accounting De Minimis Rate Used: N Rate Explanation: The County chooses to use the cost allocation plan. For purposes of charging indirect costs to federal awards, the County has not elected to use the 10% de minimus cost rate as permitted by CFR Section 200.414 of the Uniform Guidance.

Title: Subrecipients Accounting Policies: Accrual Basis of Accounting De Minimis Rate Used: N Rate Explanation: The County chooses to use the cost allocation plan. There were no awards passed through to subrecipients.