Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant and loan activity of the Village of Capac (the “Village”) 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 Village, it is not intended to and does not present the financial position, changes in net position or cash flows of the Village.
The Village’s reporting entity is defined in Note 1 of the Village’s financial statements. These financial statements were audited by King & King CPAs, LLC, and we have relied on their audit for this reference. Our audit was limited to the accompanying Schedule, which was audited in relation to the financial statements as a whole, We express no opinion or assurance on the financial statements as a whole themselves.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
Title: NOTE 3 - RECONCILIATION TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
The schedule of page 7 of the .pdf reconciles federal expenditures reported on the basic financial statements to the amount reported on the Schedule. Amounts reported in the financial statements were audited by King & King CPAs, LLC. Our audit was limited to the accompanying Schedule, which was audited in relation to the financial statements as a whole. We express no opinion or assurance on the financial statements themselves.
Title: NOTE 4 - FEDERAL PROGRAM LOANS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
The Village had outstanding federal loan balances as of June 30, 2024, as listed on page 7 of the .pdf.
Title: NOTE 5 – SUBSEQUENT EVENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
Management has evaluated subsequent events through February 26, 2025, the date the Schedule was available to be issued.
In July 2024, the Village purchased real estate located at 206 & 205 N Main Street, Capac, MI, for $650,000. The purchase was partially funded by a $271,000 grant from the U.S. Small Business Administration (SBA), a federal funding source, with the remaining $379,000 financed. The Village plans to use this building as its future office location, while also leasing space back to ChoiceOne Bank and allocating additional space for community events, meetings, and potentially as office space for Mussey Township.
Additionally, the Village anticipates beginning a Water Infrastructure Project during the fiscal year ending June 30, 2025, pending finalization of funding sources. The estimated $8.5 million project is expected to be financed through a combination of federal, state, and local funding sources:
• Federal Funding: The Village expects to receive a $4,131,500 grant through the American Rescue Plan (ARP), a $150,000 loan through the Bipartisan Infrastructure Law (BIL) program, and $73,500 in principal forgiveness through BIL for lead service line replacements.
• State Funding: The remaining costs are expected to be financed with a $4,128,500 loan from the Drinking Water State Revolving Fund (DWSRF), administered by the Michigan Finance Authority.
Management is not aware of any additional subsequent events that require disclosure.