Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: All Federal grant operations of the Town of Ocean City (the Town) are included in the scope
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement,
Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single
Audit was performed in accordance with the provisions of the OMB Compliance Supplement
(the Compliance Supplement). Compliance testing of all requirements, as described in the
Compliance Supplement, was performed for the grant program noted below. This program
represents Federal award program for fiscal year 2024 cash and non-cash expenditures to
ensure coverage of at least 20% of Federally granted funds. Actual coverage was 95% of
total cash and non-cash Federal award program expenditures.
Expenditures reported on the Schedule are recognized following the cost principles contained
in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Expenditures are also
subject to audit by the relevant Federal agency. In the opinion of management, disallowed
costs, if any, from such audits will not have a material effect on this Schedule or the financial
position of the Town.
De Minimis Rate Used: N
Rate Explanation: The Town has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Schedule includes the Federal award activity of the Town under programs of the Federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Single Audit. 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.