Notes to SEFA
Title: NOTE 2. OTHER DISCLOSURES
Accounting Policies: NOTE 1. BASIS OF PRESENTATION.
The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the Town, which is described in Note 1 to the Town’s accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Because the schedule of expenditures of federal awards presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, change in net position, or cash flow of the Town.
Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Town’s policy is not to charge federal award programs with indirect costs. There were no indirect costs during the year.
Matching costs (the Town’s share of certain program costs) are not included in the reported expenditures.
The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program.
The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Town’s financial reporting system.
De Minimis Rate Used: N
Rate Explanation: N/A
No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the Town’s casualty insurance policies.
There were no loans or loan guarantees outstanding at year-end.