Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified and full 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.
De Minimis Rate Used: N
Rate Explanation: The County 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 the County of Arenac (the County) under programs of the federal government for the year ended December,
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 the County, it is not intended to and does not present the financial position, changes in net position,
or cash flows of the County.
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the modified and full 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.
De Minimis Rate Used: N
Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
Federal revenue per the financial statements
Governmental funds $ 1,048,647
Proprietary funds 158,431
Component units 3,705,921
Reconciling items
Change in deferred inflows 1,958,616
Federal revenue not included in Schedule * (454,449)
Total expenditures of federal award per the Schedule $ 6,417,166
The federal revenue of $454,449 is reported in the financial statements of the Arenac Public Transit Authority
and Road Commission, which is a proprietary fund and a component unit, respectively, of the County and are
audited by other auditors. Therefore, their federal revenue is not reported on the County’s Schedule as it is
awarded directly to the Authority and Road Commission and is a reconciling item to the federal revenue reported
on the financial statements. The Road Commission federal revenue is reported within the operating grants and
contributions line item on the financial statements.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the modified and full 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.
De Minimis Rate Used: N
Rate Explanation: The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
There were no amounts provided to subrecipients.