Audit 399579

The accompanying Schedule of Expenditures of Federal Awards presents the activity of federal award programs administered by the Town, which is described in Note 1 to the Town of Diana, New York’s accompanying financial statements, using the modified accrual basis of accounting. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. 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 Town, it is not intended to and does not present the financial position and changes in net position of the Town.

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 to reimbursement. Matching costs (the Town of Diana, New York’s share of certain program costs) are not included in the reported expenditures. Town of Diana, New York has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. (Effective for the year beginning after October 1, 2024 the de minimis cost rate increased to 15%.) The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Town of Diana, New York’s financial reporting system.