Audit 323079

Title: NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SEE PAGE 54 OF AUDIT De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10% de minim us indirect cost rate, as allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards includes the federal grant activity of Hinsdale County and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements Federal awards provided to sub recipients are treated as expenditures when paid or distributed to the sub recipients. The County has elected to not use the 10% de minimus indirect cost rate, as allowed under the Uniform Guidance.

Title: NOTE B - REPORTING ENTITY Accounting Policies: SEE PAGE 54 OF AUDIT De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10% de minim us indirect cost rate, as allowed under the Uniform Guidance. The financial reporting entity consists of Hinsdale County, Colorado (the County) as the primary government; organizations for which the County is financially accountable; and other organizations for which the nature and significance of their relationship with the County are such that exclusion would cause the County's financial statements to be misleading or incomplete.

Title: NOTE C - PASS-THROUGH AWARDS Accounting Policies: SEE PAGE 54 OF AUDIT De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10% de minim us indirect cost rate, as allowed under the Uniform Guidance. The County receives certain federal awards from pass-through awards from the State of Colorado. The amounts received are commingled by the State of Colorado with other funds. Only the federal amount of such pass-through awards is included in the Schedule of Expenditures of Federal Awards

Title: NOTE D – NON-CASH AWARDS EXPENDED Accounting Policies: SEE PAGE 54 OF AUDIT De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10% de minim us indirect cost rate, as allowed under the Uniform Guidance. Fair market value of assistance at the time of disbursement to the recipient or the assessed value, is provided by the state or federal agency.

Title: NOTE E – CONTRACT WITH OTHER GOVERNMENTS Accounting Policies: SEE PAGE 54 OF AUDIT De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10% de minim us indirect cost rate, as allowed under the Uniform Guidance. Hinsdale County contracts with Gunnison County to provide services under the programs provided by the Department of Human Services, those grants are listed below. Guardianship Assistance Recovery 93.090 $ 58 Temporary Assistance to Needy Families 93.558 8,950 Child Support Enforcement 93.563 1,195 Child Care and Development Block Grant 93.575 3,741 Foster Care-Title IV-E 93.658 16,835 Adoption Assistance 93.659 372 Social Service Block Grant 93.667 4,176 Medical Assistance Program 93.778 436 Total programs administered by Gunnison County $ 35,763 These balances are not reported in the financial statements for Hinsdale County since the funds are passed through to Gunnison County.