Title: Basis of Presentation
Accounting Policies: (1) 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Pass-through entity identifying numbers are presented where available.
(3) The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
(4) Federal grants received by the Town are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimbursement, which would become a liability of the Town.
(5) The federal expenditures for U.S. Department of Homeland Security – Federal Emergency Management Agency (“FEMA”), Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Hurricane Isaias 4567 DR NY. The $3,925 of expenditures were incurred in the years 2020 through 2022.
(6) The Community Development Block Grant CFDA #14.218 reported federal expenditures includes $14,268 of expenditures funded with program income.
(7) The HOME Investment Partnership Program CFDA #14.239 reported federal expenditures includes $27,616 of expenditures funded with program income.
De Minimis Rate Used: N
Rate Explanation: The Town has no elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Town of Babylon, New York, (the “Town”) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Town it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town.
Title: Federally Funded Loans
Accounting Policies: (1) 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Pass-through entity identifying numbers are presented where available.
(3) The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
(4) Federal grants received by the Town are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimbursement, which would become a liability of the Town.
(5) The federal expenditures for U.S. Department of Homeland Security – Federal Emergency Management Agency (“FEMA”), Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Hurricane Isaias 4567 DR NY. The $3,925 of expenditures were incurred in the years 2020 through 2022.
(6) The Community Development Block Grant CFDA #14.218 reported federal expenditures includes $14,268 of expenditures funded with program income.
(7) The HOME Investment Partnership Program CFDA #14.239 reported federal expenditures includes $27,616 of expenditures funded with program income.
De Minimis Rate Used: N
Rate Explanation: The Town has no elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In previous years, the Town, received loan proceeds in the amount of $4,100,000 from the Section 108 loan guarantee program for a specific capital project. In accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”, Section 205(a) and 2 CFR Section 200.502(b), this amount was considered an expenditure of federal awards in the year the loan proceeds were received. This loan guarantee program is considered to have continuing compliance requirements until the activity financed by the loan has been designated as completed. As of January 1, 2019, the continuing compliance requirements have been met, therefore there were no amounts included in the Schedule as of December 31, 2023. The aggregate Section 108 loan guarantee outstanding balance at year end was $2,109,000. In a prior year, the Town received loan proceeds to fund a sewer expansion project from the New York State Environmental Facilities Corporation. A portion of the loan proceeds were funded with the Capitalization Grant for Clean Water State Revolving Fund AL# 66.458. In accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”, Section 205(a) and 2 CFR Section 200.502(a), subrecipients receiving these loans report the expenditures of federal awards in the year the project expenditures were incurred. Since the project expenditures took place in previous years and there are no continuing compliance requirements with this loan, the outstanding loan balance (federally funded portion) as of December 31, 2023 of $7,702,400 is not reported on the Schedule.