Audit 359649

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Charter Township of Hampton 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Hampton, it is not intended to and does not present the financial position or changes in net position of Charter Township of Hampton. Expenditures reported on the Schedule are reported on the modified accrual 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. Negative amounts (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Charter Township of Hampton has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Charter Township of Hampton does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The Charter Township of Hampton has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. No indirect cost rate used. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Charter Township of Hampton 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Hampton, it is not intended to and does not present the financial position or changes in net position of Charter Township of Hampton. Expenditures reported on the Schedule are reported on the modified accrual 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. Negative amounts (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Charter Township of Hampton has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Charter Township of Hampton does not have any subrecipients.

Title: Reconciliation of Revenue Reported in the Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Charter Township of Hampton 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Hampton, it is not intended to and does not present the financial position or changes in net position of Charter Township of Hampton. Expenditures reported on the Schedule are reported on the modified accrual 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. Negative amounts (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Charter Township of Hampton has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Charter Township of Hampton does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The Charter Township of Hampton has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. No indirect cost rate used. Total federal expenditures per Schedule of Expenditures of Federal Awards $3,712,593 less Sewer Fund: Federal capital grants $313,465 less Sewer Fund: Federal USDA loan $2,768,000 equals Revenues per financial statements - federal sources $631,128