Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the activity of all federal awards programs administered by the Incorporated Village of Freeport (the “Village”). Federal awards received directly from Federal agencies, as well as federal awards passed-through from other government agencies, are included on the Schedule. The information in the 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, change in net assets or cash flows of the Village.
Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the general purpose 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. Subrecipients There were no payments made to subrecipients from federal awards received in the year ended February 28, 2025. Indirect Costs The Village has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Matching Costs Matching costs (i.e. the Village’s share of certain program costs) are not included in the reported expenditures. Other Disclosures No insurance is carried specifically to cover equipment purchased with Federal funds. Equipment purchased with Federal funds is covered by the Village’s casualty insurance policy. There were no loans or loan guarantees outstanding at year-end.
The Village has determined that all federal programs with expenditures of $750,000 or more are Type A Programs and deemed Major Programs for purposes of the Schedule.