Audit 331166

Title: RISK-BASED AUDIT APPROACH Accounting Policies: The City of Milford, Delaware is the reporting entity for financial reporting purpose as defined in Note 1 to the City’s basic financial statements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Milford, Delaware under programs of the federal government for the year ended June 30, 2023. 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 Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Milford did not use the 10% de minimis indirect cost rate allowed by the Uniform Guidance. The 2023 threshold for determining Type A and Type B programs is $750,000. The following program was audited as major: - American Rescue Plan Act, ALN #21.027 The amount expended under the program audited as a major federal program for the year ended June 30, 2023, totaled $2,208,432 or 99.0% of total federal awards expended.