Audit 352963

Title: U.S. DEPARTMENT OF AGRICULTURE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Town of Sutton, Massachusetts and is presented on the modified accrual basis of accounting. 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards is presented using the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principals, certain type of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town of Sutton, Massachusetts did not elect to use the 10% de minimis indirect cost rate identified in §200.414 of the Uniform Guidance. The amount reported for the National School Lunch Program – Non-Cash Assistance (Commodities) represents nonmonetary assistance and is reported in the Schedule at the fair market value of the commodities received. The amounts reported for the School Breakfast Program – Cash Assistance, the National School Lunch Program – Cash Assistance, and Supply Cain Assistance – Cash Assistance represent cash receipts from federal reimbursements.