Notes to SEFA
The accompany Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Charter Township of Oshtemo (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 (CFR) 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 net position or changes in fund balances 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Township has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Township rather uses an indirect cost rate as approved by the applicable federal grantor.
The Township has received a U.S. Department of Agriculture and Rural Development loan guarantee. The loan draw proceeds provided during the year are included in the federal expenditures presented in the Schedule. The balance outstanding on the loan at December 31, 2025, consisted of: ALN Number Program Name Balance 10.760 Water and Waste Disposal Systems for Rural Communities $ 7,738,763