The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal award activity of the Township 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 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 Township, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Township.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, or other applicable 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 when available.
For the purpose of charging indirect costs to federal awards, the Township has not elected to use the 15 percent de minimis indirect cost rate.
The Township was awarded a loan under the Drinking Water State Revolving (DWSRF) program (ALN #66.468) administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), issued as a Junior Lien Revenue Bond – Series 2024. The total approved loan amount was $4,495,000, of which $3,601,705 (80.13%) is designated as principal forgiveness and $893,295 (19.87%) is subject to repayment. During the fiscal year ended December 31, 2025, the Township expended $2,929,395 in federal funds under this program. Of this amount, approximately $2,309,022 represents the forgivable portion and $620,373 is the portion to be repaid. As of year-end, no loan repayments have been made. Repayment is scheduled to begin October 1, 2026. The outstanding loan balance at December 31, 2025 is $706,989.
Federal revenue as reported in the audited financial statements at December 31, 2025 General Fund $ 147,791 Proprietary Fund 2,309,022 Total recognized federal revenue 2,456,813 Federal loan expenditures reported on the SEFA but not recognized as revenue 620,373 Total expenditures per the Schedule of Expenditures of Federal Awards $ 3,077,186