Title: NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: De minimis cost rate not used
1. Reporting Entity
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all Federal financial
assistance programs of Sussex County, Delaware (County). The County’s reporting entity is defined in Note A of
the notes to basic financial statements. Federal awards that are passed through other governmental agencies are
include on the schedule. Matching funds are excluded from the schedule and program income generated from
federal grants is classified as federal expenditures when spent.
2. Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
*Such expenditures are recognized following, as applicable, the cost principles contained in Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards, wherein certain types of expenditures are not allowed or are limited to reimbursement.
Title: NOTE B - INDIRECT COST RATE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: De minimis cost rate not used
1. The County did not elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C - LOANS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: De minimis cost rate not used
The County had the following federal expenditures that have been or will be funded by loans from the U.S Department of
Agriculture and the U.S. Environmental Protection Agency for the year ended June 30, 2024.
Title: NOTE D – LOANS OUTSTANDING
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: De minimis cost rate not used
Neighborhood Stabilization Program (NSP1)
The County administers low-income housing loan programs under the Community Development Block Grant / State’s
Program and Non- Entitlement Grants in Hawaii ALN 14.228. The total amount outstanding at June 30, 2024 is $631,840
of which $31,559 is included in the current fiscal year’s federal expenditures balance for that program.
Title: NOTE E – EXPENDITURES VARIANCES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual and the modified
accrual basis of accounting, which are described in Note A of the notes to the basic financial statements.
Expenditures are recognized following the cost principles contained in the Uniform Guidance*, where certain
types of expenditures are not allowed or are limited to reimbursement. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: De minimis cost rate not used
The County has the included the following prior year federal expenditures on the Schedule of Federal Awards for the year
ended June 30, 2024. The County incurred an expenditure variance due to customer sewer connection fee expenditures qualify for grant funds
reimbursement, but do not qualify as an expenditure according to generally accepted accounting principals (GAAP). The
following includes the program reconciliation for the variances.