Audit 376421

NOTE 1--BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Village of Cassopolis, Cass County, Michigan (the “Village”) under programs of the federal government for the year ended June 30, 2025. 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 Village, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Village. The Village’s reporting entity is defined in Note A of the Village’s financial statement audit report

NOTE 2--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note A to the Village's financial statements. 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. For purposes of charging indirect costs to federal awards, the Village has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.

NOTE 3--RECONCILIATION TO THE FINANCIAL STATEMENTS The federal revenue reported in Exhibit D and Exhibit F of the Village’s financial statements reports revenues of $2,072,553 while the SEFA reports total expenses of $2,221,359. The $57,576 difference is due to unavailable grant funds not received within 60 days of the end of the fiscal year.