Notes to SEFA
Title: RISK-BASED AUDIT APPROACH
Accounting Policies: The County of Chester, Pennsylvania (the "County") as the reporting entity for financial reporting purposes is defined in Note 1 to the County's financial statements. For purposes of preparing the schedule of expenditures of federal awards, the County's reporting entity differs from that used for financial purposes, in that awards received and expended, if any, by the following entities are excluded: Chester County Solid Waste Authority, Chester County Airport Authority, Chester County Water Resources Authority, Chester County Library and District Center, Chester County Conference and Visitor's Bureau, Inc, and Chester County General Authority. Direct awards pertaining to these entities have been excluded from the accompanying schedule of expenditures of federal awards principally because the County is not directly involved in maintaining the accounting records or systems of internal accounting and administrative controls for these entities. Where applicable, these entities have arranged for the issuance of separate Single Audit Reports containing their audited financial statements and schedule of expenditures of federal awards and all required audit reports. Except as indicated above, the accompanying schedule of federal expenditures presents the activity of all federal award programs of the County. The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate.
The 2024 threshold for determining Type A and Type B programs is $3,000,000. The following low-risk Type A programs were not audited as major: ALN 93.563 Child Support Enforcement, ALN 93.778 Medicaid Cluster, ALN 17.258/17.259/17.278 WIOA Cluster, and 14.218 CDBG Entitlement Grants Cluster. The amount expended under programs audited as major federal programs for the year ended December 31, 2024, totaled $59,093,186 or 56.6% of total federal awards.