Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Charter Township of Delta, Michigan, under programs of the federal government for the year ended December 31, 2025. The information in this 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 the Charter Township of Delta, Michigan, it is not intended to and does not present the financial position or changes in net position of the Charter Township of Delta, Michigan.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Township has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024.
The following reconciles the intergovernmental revenues reported in the December 31, 2025, basic financial statements to the expenditures of the Township administer federal programs reported on the Schedule of Expenditures of Federal Awards: Per basic financial statements State and federal grants $ 1,318,068 Less state grants (958,908) Total federal grants 359,160 Federal expenditures capitalized 8 ,340,525 Total expenditures of federal awards $ 8,699,685