Notes to SEFA
Title: U.S. Department of Agriculture Programs
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City receives non-cash commodities from the U.S. Department of Agriculture as a part of the National School Lunch program. The amounts reported as non-cash assistance represent the fair market value of these commodities received during the year. The amounts reported as cash assistance represent federal reimbursements for meals provided.
Title: U.S. Department of Homeland Security Programs
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
U.S. Department of Homeland Securitys Disaster Grants Public Assistance (Presidentially Declared Disaster) expenditures are recognized when the Federal Emergency Management Administration (FEMA) approves the Citys project worksheet (PW) and the City has incurred the eligible expenditures. The amounts reported in the Schedule include $150,591 of expenditures incurred in prior fiscal years but awarded by FEMA in the current fiscal year.
Title: Component Unit Federal Grant Activities and Uniform Guidance Audit
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule includes the federal grant transactions of the City. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City of Marlborough has opted to contract with and utilize the Marlborough Community Development Authority, a quasi-public corporation, to carry out on-behalf of the City, program functions relating to the U.S. Department of Housing and Urban Developments Housing Voucher Cluster grant (CFDA #14.871) awarded to the City of Marlborough. The Marlborough Community Development Authority is recognized as a component unit of the City of Marlborough based upon criteria stipulated in GASB Statement Nos. 14, 39 and 61; primary qualification as a component unit comes as a result of the Marlborough Community Development Authority being in substance a part of the governmental operations of the City.As allowed under Paragraph 12.30 of the GAS/Uniform Guidance AICPA Audit Guide withregards to component units, the City of Marlborough has chosen to have the MarlboroughCommunity Development Authority be responsible for performing the Uniform Guidance audit relative to the grant mentioned above. Accordingly, the activity of this federal award are not covered under this audit report, but under a separate audit report issued by other auditors of the Marlborough Community Development Authority Housing Choice Voucher Program grant. Copies of the Uniform Guidance audit report submitted by the Marlborough Community Development Authority to the Federal Audits Clearinghouse can be obtained by contacting them at:Marlborough Community Development AuthorityAttn: Chad Carter, Executive Director255 Main Street, Suite 212Marlborough, MA 01752