Audit 363319

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements with the exception of the expenditures related to Assistance Listing Number 66.468, Capitalization Grants for Drinking Water – State Revolving Fund (DWSRF) program and Assistance Listing Number 66.458, Capitalization Grants for Clean Water – State Revolving Fund (CWSRF) program. The DWSRF/CWSRF expenditures are reported on cash basis in accordance with the subrecipient reporting guidelines outlined in the 2024 OMB Compliance Supplement for ALN 66.468 and 66.458. 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. Pass-through entity identifying numbers are presented where available. For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Charter Township of Oscoda (the “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 Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Township, it is not intended to and does not present the financial position, changes in net position or cash flows of the Township. The Township’s reporting entity is defined in Note 1 of the Township’s Audited Financial Statements.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements with the exception of the expenditures related to Assistance Listing Number 66.468, Capitalization Grants for Drinking Water – State Revolving Fund (DWSRF) program and Assistance Listing Number 66.458, Capitalization Grants for Clean Water – State Revolving Fund (CWSRF) program. The DWSRF/CWSRF expenditures are reported on cash basis in accordance with the subrecipient reporting guidelines outlined in the 2024 OMB Compliance Supplement for ALN 66.468 and 66.458. 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. Pass-through entity identifying numbers are presented where available. For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements with the exception of the expenditures related to Assistance Listing Number 66.468, Capitalization Grants for Drinking Water – State Revolving Fund (DWSRF) program and Assistance Listing Number 66.458, Capitalization Grants for Clean Water – State Revolving Fund (CWSRF) program. The DWSRF/CWSRF expenditures are reported on cash basis in accordance with the subrecipient reporting guidelines outlined in the 2024 OMB Compliance Supplement for ALN 66.468 and 66.458. 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. Pass-through entity identifying numbers are presented where available. For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.

Title: NOTE 3 - RECONCILIATION TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements with the exception of the expenditures related to Assistance Listing Number 66.468, Capitalization Grants for Drinking Water – State Revolving Fund (DWSRF) program and Assistance Listing Number 66.458, Capitalization Grants for Clean Water – State Revolving Fund (CWSRF) program. The DWSRF/CWSRF expenditures are reported on cash basis in accordance with the subrecipient reporting guidelines outlined in the 2024 OMB Compliance Supplement for ALN 66.468 and 66.458. 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. Pass-through entity identifying numbers are presented where available. For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Township has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The following reconciles the federal activity from the basic financial statements with the federal expenditures in the Schedule: see page 79 of the PDF.