Audit 34415

Accounting Policies: I.BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Town of Rochester, Massachusetts under programs of the federal government for the year ended June 30, 2022. 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 of Rochester, Massachusetts, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Rochester, Massachusetts.II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly expenditures are recognized when the liability is incurred. 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.III. IN DIRECT COST RATEThe Town of Rochester, Massachusetts has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.IV. SUBRECIPIENTSThe Town of Rochester, Massachusetts passed no federal awards through to sub-recipients during the period under audit. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.