Notes to SEFA
Title: Cognizant Agency
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Charter Township of AuSable under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Charter Township of AuSable it is not intended to and does not present the financial position, changes in net position, or cash flows of the Charter Township of AuSable.Expenditures reported on the schedule are reported on the accrual basis of accounting, which is described in Note 1 of the Charter Township of AuSables financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: Y
Rate Explanation: For purpose of charging indirect costs to federal awards, the Charter Township has elected to use the 10% de minimis cost rate as permitted by CFR Section 200.414 of the Uniform Guidance, however, no indirect costs were charged to the federal grant.
The Charter Township has not been assigned a cognizant agency. Therefore, the Township is under the general oversight of the U.S. Department of Agriculture which provided the direct federal funding to the Township during 2022.
Title: Reconciliation to the Basic Financial Statements
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Charter Township of AuSable under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Charter Township of AuSable it is not intended to and does not present the financial position, changes in net position, or cash flows of the Charter Township of AuSable.Expenditures reported on the schedule are reported on the accrual basis of accounting, which is described in Note 1 of the Charter Township of AuSables financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: Y
Rate Explanation: For purpose of charging indirect costs to federal awards, the Charter Township has elected to use the 10% de minimis cost rate as permitted by CFR Section 200.414 of the Uniform Guidance, however, no indirect costs were charged to the federal grant.
Total federal revenue recognized per the Schedule of Expenditures of Federal Awards were reported in the basic financial statements Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds in the current fiscal year.