Notes to SEFA
Title: Note 1: Reporting Entity
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate.
The County of Berks, Pennsylvania (the "County") as the reporting entity for financial reporting purposes is defined in Note 1 to the County's financial statements. For purposes of preparing the schedule of expenditures of federal awards, the County's reporting entity differs from that used for financial purposes, in that awards received and expended, if any, by the following entities are excluded: Reading Regional Airport Authority and Reading Area Community College. Direct awards pertaining to these entities have been excluded from the accompanying schedule of expenditures of federal awards principally because the County is not directly involved in maintaining the accounting records or systems of internal accounting and administrative controls for these entities. Where applicable, these entities have arranged for the issuance of separate Single Audit Reports containing their audited financial statements and schedule of expenditures of federal awards and all required audit reports. Except as indicated above, the accompanying schedule of federal expenditures presents the activity of all federal award programs of the County.
Title: Note 2: Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate.
The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements. The County did not use the 10% de minimis indirect cost rate.
Title: Note 3: Risk-Based Audit Approach
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate.
The 2023 threshold for deteriming Type A and Type B programs is $2,314,635. The following low-risk Type A programs were not audited as major: ALN 14.218 CDBG Entitlement Grants Cluster and ALN 93.563 Child Support Enforcement. The amount expended under programs audited as major federal programs for the year ended December 31, 2023, totaled $58,904,186 or 76% of total federal awards.
Title: Note 4: Disaster Grants - Public Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate.
Nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards when (1) FEMA has approved the nonfederal entity’s Project Worksheet and (2) the nonfederal entity has incurred the eligible expenditures. The County incurred $3,760,286 of expenditures during the COVID-19 emergency beginning in 2020, which are included on the Schedule of Expenditures of Federal Awards as of December 31, 2023.