Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized follwing 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 may or may not be allowable or may be limited as to reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Purchases of fixed assets from federal awards are recorded as a federal expenditure. This is not consistent with Generally Accepted Accounting Principles (GAAP).
De Minimis Rate Used: N
Rate Explanation: The City did not use an indirect cost rate.
The accompanying schedule of expenditures of federal awards includes all federal award activity of City of Frostburg, Maryland under programs of the federal government for the fiscal year ended June 30, 2024. This statement has been prepared in accordance with generally accepted accounting principles. The information on this schedule is prepared 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 Government, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Government.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized follwing 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 may or may not be allowable or may be limited as to reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Purchases of fixed assets from federal awards are recorded as a federal expenditure. This is not consistent with Generally Accepted Accounting Principles (GAAP).
De Minimis Rate Used: N
Rate Explanation: The City did not use an indirect cost rate.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such 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, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Purchases of fixed assets from federal awards are recorded as a federal expenditure. This is not consistent with Generally Accepted Accounting Principles (GAAP).
Title: Subrecipients
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized follwing 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 may or may not be allowable or may be limited as to reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Purchases of fixed assets from federal awards are recorded as a federal expenditure. This is not consistent with Generally Accepted Accounting Principles (GAAP).
De Minimis Rate Used: N
Rate Explanation: The City did not use an indirect cost rate.
The City did not pass-through any federal awards to subrecipients for the year ended June 30, 2024.
Title: Revenue Recognition
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized follwing 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 may or may not be allowable or may be limited as to reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Purchases of fixed assets from federal awards are recorded as a federal expenditure. This is not consistent with Generally Accepted Accounting Principles (GAAP).
De Minimis Rate Used: N
Rate Explanation: The City did not use an indirect cost rate.
Revenues recognized from federal sources per the schedule of expenditures of federal awards are included in four different funds in the City’s financial statements. Federal grant revenues of $1,985,623 are included in grant income – federal within the general fund column on the statement of revenues, expenditures and changes in fund balances – governmental funds. Federal grant revenues included in project reimbursements on the statement of revenues, expenditures, and changes in fund balances – proprietary funds are as follows: $580,093 in the water fund, $270,712 in the sewer fund, and $493 in the garbage fund.