Title: Note 1 – Basis of Presentation
Accounting Policies: Note 2 – Summary of Significant Accounting Policies. 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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate. For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal award activity of the Charter Township of AuSable (the “Charter Township”) 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 Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Charter Township of AuSable, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Charter Township of AuSable.
Title: Note 2 – Summary of Significant Accounting Policies
Accounting Policies: Note 2 – Summary of Significant Accounting Policies. 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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate. For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
Title: Note 3 – Indirect Cost Rate
Accounting Policies: Note 2 – Summary of Significant Accounting Policies. 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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate. For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
Title: Note 4 – Loan Program Disclosure
Accounting Policies: Note 2 – Summary of Significant Accounting Policies. 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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate. For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
The Township was awarded a loan under the Drinking Water State Revolving (DWSRF) program (ALN #66.468) administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), issued as a Junior Lien Revenue Bond – Series 2024. The total approved loan amount was $4,495,000, of which $3,601,705 (80.13%) is designated as principal forgiveness and $893,295 (19.87%) is subject to repayment.
During the fiscal year ended December 31, 2024, the Township expended $435,848 in federal funds under this program. Of this amount, approximately $349,232 represents the forgivable portion and $86,616 is the portion to be repaid.
As of year-end, no loan repayments have been made. Repayment is scheduled to begin October 1, 2026. The outstanding loan balance at December 31, 2024 is $86,616.
Title: Note 5 – Reconciliation to the Basic Financial Statements
Accounting Policies: Note 2 – Summary of Significant Accounting Policies. 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 or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate. For the purpose of charging indirect costs to federal awards, the Charter Township has not elected to use the 10% minimums indirect cost rate.
Federal revenue as reported in the audited financial statements
at December 31, 2024
General Fund $3,122,553
Proprietary Fund 349,232
Total recognized federal revenue 3,471,785
Federal loan expendiutres reported on the SEFA but not recognized as revenue 86,616
Total expenditures per the Schedule of Expenditures of Federal Awards $3,558,401