Audit 362976

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying Schedule of Expenditures of Federal awards is presented using the modified accrual basis of accounting for all awards charged to governmental funds. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted using a different basis of accounting. Federal awards expenditures are reported on the Statement of Activities as part of the expenses of each program. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as Federal Awards. De Minimis Rate Used: N Rate Explanation: Lower Saucon Township did not elect to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activities in all the federal financial assistance programs of Lower Saucon Township for the year ended December 31, 2024. The information in the Schedule is presented in accordance with the requirements of the 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 Lower Saucon Township, it is not intended to and does not present the financial position, changes in nets assets, or cash flows of Lower Saucon Township.

Title: NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal awards is presented using the modified accrual basis of accounting for all awards charged to governmental funds. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted using a different basis of accounting. Federal awards expenditures are reported on the Statement of Activities as part of the expenses of each program. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as Federal Awards. De Minimis Rate Used: N Rate Explanation: Lower Saucon Township did not elect to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal awards is presented using the modified accrual basis of accounting for all awards charged to governmental funds. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted using a different basis of accounting. Federal awards expenditures are reported on the Statement of Activities as part of the expenses of each program. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as Federal Awards.

Title: NOTE 3 - ORGANIZATION AND SCOPE Accounting Policies: The accompanying Schedule of Expenditures of Federal awards is presented using the modified accrual basis of accounting for all awards charged to governmental funds. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted using a different basis of accounting. Federal awards expenditures are reported on the Statement of Activities as part of the expenses of each program. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as Federal Awards. De Minimis Rate Used: N Rate Explanation: Lower Saucon Township did not elect to use the 10% de minimis indirect cost rate. The Township recognized 8.40% of its total general fund revenue in federal awards.

Title: NOTE 4 - INDIRECT COSTS Accounting Policies: The accompanying Schedule of Expenditures of Federal awards is presented using the modified accrual basis of accounting for all awards charged to governmental funds. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted using a different basis of accounting. Federal awards expenditures are reported on the Statement of Activities as part of the expenses of each program. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as Federal Awards. De Minimis Rate Used: N Rate Explanation: Lower Saucon Township did not elect to use the 10% de minimis indirect cost rate. Lower Saucon Township did not elect to use the 10% de minimis indirect cost rate.