Audit 324965

Accounting Policies: This Schedule is prepared on the same basis of accounting as the Town of Twisp’s statements. The Town of Twisp uses the cash basis of accounting. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Town of Twisp’s portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform This Schedule is prepared on the same basis of accounting as the Town of Twisp financial statements. The Town of Twisp reports financial activity in accordance with the Cash Basis Budgeting, Accounting and Reporting System (BARS) Manual prescribed by the State Auditor’s Office under the authority of Washington State law, Chapter 43.09 RCW. This manual prescribes a financial reporting framework that differs from generally accepted accounting principles (GAAP) in the following manner: Financial transactions are recognized on a cash basis of accounting as described below. • Component units are required to be disclosed, but are not included in the financial statements (see Notes to the Financial Statements). • Government-wide statements, as defined in GAAP, are not presented. • All funds are presented, rather than a focus on major funds. • The Schedule of Liabilities is required to be presented with the financial statements as supplementary information. • Supplementary information required by GAAP is not presented. • Ending balances are presented using classifications that are different from the ending net position classifications in GAAP. De Minimis Rate Used: N Rate Explanation: The Town of Twisp has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.