Audit 341072

Title: 2. BASIS OF PRESENTATION Accounting Policies: All federal grant operations of the City of Aberdeen, Maryland (the City) are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the Schedule of Expenditures of Federal Awards (the Schedule) represent all federal award programs and other grants with fiscal year 2024 cash or non-cash expenditure activities. For our single audit testing, we tested the federal award program below with fiscal year 2024 cash and non-cash expenditures to ensure coverage of at least 20% of federally granted funds. Our actual coverage was 98%. Assistance Federal Major Program Listing Expenditures Coronavirus State and Local Fiscal Recovery Funds 21.027 $ 3,845,873 Expenditures are recognized following 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 (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 has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2024 and is reported on the accrual basis of accounting. The information in the Schedule is presented in accordance with Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.