Title: Note 1—Basis of presentation
Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are presented using the modified accrual basis of accounting method. This method is consistent with the method used to prepare the County’s basic financial statements.
Cost Principles – The cost principles applicable to the expenditures on the Schedule include Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These principles identify certain types of expenditures that are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The schedule of expenditures and federal and state awards (the “schedule”) presents the activities of all federal and state financial award programs of Durham County, North Carolina (the “County”) for the year ended June 30, 2024. All federal and state awards received directly from federal and state agencies as well as federal and state financial awards passed through other government agencies are included in the Schedule. The information in the 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 (“Uniform Guidance”) and the State Single Audit Implementation Act. Because the schedule presents only a selected portion of the operations of the County, it is not intended to present the financial position, changes in net assets or cash flows of the County.
Title: Note 3—Cluster of programs
Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are presented using the modified accrual basis of accounting method. This method is consistent with the method used to prepare the County’s basic financial statements.
Cost Principles – The cost principles applicable to the expenditures on the Schedule include Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These principles identify certain types of expenditures that are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The following federal programs are clustered by the N.C. Department of Health and Human Services and are treated separately for state audit requirement purposes:
Special Children Adoption Fund – State Cluster 93.556; 93.558; 93.603; and 93.645
Refugee and Entrant Assistance – State Cluster 93.566 and 93.576
Foster Care, Adoption, and Guardianship Assistance Program – State Cluster 93.658 and 93.659
Title: Note 4—Non-cash awards
Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are presented using the modified accrual basis of accounting method. This method is consistent with the method used to prepare the County’s basic financial statements.
Cost Principles – The cost principles applicable to the expenditures on the Schedule include Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These principles identify certain types of expenditures that are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The County did not receive noncash federal or noncash state awards during the year ended June 30, 2024.
Title: Note 5—Contingencies
Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are presented using the modified accrual basis of accounting method. This method is consistent with the method used to prepare the County’s basic financial statements.
Cost Principles – The cost principles applicable to the expenditures on the Schedule include Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These principles identify certain types of expenditures that are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although the County expects such amounts, if any, to be immaterial.
Title: Note 6—Opioid Settlement Funds
Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are presented using the modified accrual basis of accounting method. This method is consistent with the method used to prepare the County’s basic financial statements.
Cost Principles – The cost principles applicable to the expenditures on the Schedule include Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These principles identify certain types of expenditures that are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate - The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The North Carolina Department of Justice does not consider Opioid Settlement Funds either Federal or State financial assistance since they are from a settlement with major drug companies. Since these funds are subject to the State Single Audit Implementation Act, they are reported as Other Financial Assistance on the SEFSA and considered State awards for State single audit requirements.