Audit 320039

Title: Coronavirus State and Local Fiscal Recovery Funds Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Cottonwood County. The County’s reporting entity is defined in Note 1 to the financial statements. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Cottonwood County 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 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 Cottonwood County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Cottonwood County. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate Cottonwood County has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. During the current year, Cottonwood County has identified $152,324 of 2022 expenditures to be applied to the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing No. 21.027. These expenditures were not identified in time to be included in the 2022 Schedule of Expenditures of Federal Awards. Because they are not current year expenditures, they are not included in the 2023 Schedule of Expenditures of Federal Awards.