Audit 355649

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (Schedule) are reported on the cash 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. Therefore, some of the amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule of expenditures of federal awards (Schedule) are reported on the cash 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. Therefore, some of the amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough.

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (Schedule) are reported on the cash 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. Therefore, some of the amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule includes the federal award activity of the Borough of Sharpsville ("Borough") under programs of the federal government for the year ended December 31, 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).

Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (Schedule) are reported on the cash 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. Therefore, some of the amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: SUBRECIPIENT FUNDING Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (Schedule) are reported on the cash 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. Therefore, some of the amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. There were no funds passed through to subrecipients from any of the federal programs.