Audit 358022

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Charter Township of Union 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). Because the Schedule presents only a selected portion of the operations of Charter Township of Union, it is not intended to and does not present the financial position, changes in financial position, or cash flows of Charter Township of Union.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 3 - Subrecipients Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No amounts were provided to subrecipients.

Title: Note 4 - Construction Commitments Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Charter Township of Union has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. At December 31, 2024, the Township has a balance of $8,178,244 remaining on construction commitments which totaled $10,985,000, related to federal funds.