Notes to SEFA
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of North Augusta, South Carolina (the “City”) and is prepared on the accrual basis of accounting. The information in the 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). Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $1,000,000. The threshold of $1,000,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City qualified as a low-risk auditee for the fiscal year ended December 31, 2025.
NOTE 2. DE MINIMIS INDIRECT COST RATE The City chose not to use the allowable 15% de Minimis indirect cost rate for the year ended December 31, 2025.
NOTE 3. NON-CASH AWARDS AND LOANS There were no federal awards expended in the form of noncash assistance during the fiscal year. There were also no loans or loan guarantees outstanding at year end.