Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the 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 TOWN HAS ELECTED NOT TO USE THE DE MINIMIS COST RATE
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Town of Hempstead, New York (the “Town”) under programs of the federal government for the year ended December 31, 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). 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
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the 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 TOWN HAS ELECTED NOT TO USE THE DE MINIMIS COST RATE
Reporting Entity - For purposes of complying with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, “Uniform Administrative Guidance, Cost Principles, and Audit Requirements of Federal Awards” (Uniform Guidance), the Town is defined in a manner consistent with the entity defined in the Town’s basic financial statement as of and for the year ended December 31, 2023. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. However, when applicable, expenditures relating to U.S. Department of Homeland Security and Federal Emergency Management Agency (“FEMA”) Federal Assistance Listing Number 97.036 are reported when (1) FEMA has approved the project worksheet, and (2) eligible expenditures have been incurred, in accordance with FEMA regulations. Pass-through entity identifying numbers are presented where available. The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Federal grants received by the Town are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimbursement, which would become a liability of the Town.
Title: Note 3 - Section 8 Housing Choice Voucher Program
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the 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 TOWN HAS ELECTED NOT TO USE THE DE MINIMIS COST RATE
Effective September 1, 2020, the U.S. Department of Housing and Urban Development, approved the transfer of the Section 8 Housing Choice Vouchers Program from the Town of Hempstead Department of Urban Renewal to the New York State Homes and Community Renewal. As of December 31, 2023, the Town is holding approximately $189,000 of cash, which is expected to be remitted to the U.S. Department of Housing and Urban Development upon receipt of their final guidance.