Notes to SEFA
Title: NOTE A – SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: See page 105 of the pdf file.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the
City of Rockland, Maine under programs of the federal government for the year ended June 30, 2024. 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 City of Rockland,
Maine, it is not intended to and does not present the financial position or changes in net position of the City of
Rockland, Maine.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: See page 105 of the pdf file.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business to amounts reported as expenditures in prior years.
Title: NOTE C – INDIRECT COST RATE
Accounting Policies: See page 105 of the pdf file.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City of Rockland, Maine has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform
Guidance.
Title: NOTE D – PASS-THROUGH AWARDS
Accounting Policies: See page 105 of the pdf file.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City of Rockland, Maine receives certain federal awards in the form of pass-through awards from the State of Maine.
Such amounts received as pass-through awards are specifically identified on the Schedule.
Title: NOTE E – MAJOR PROGRAMS
Accounting Policies: See page 105 of the pdf file.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with the Uniform Guidance, major programs are determined using a risk-based approach. Programs in the
accompanying Schedule denoted with an asterisk (*) are determined by the independent auditor to be major programs.