Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs administered by the Town, which is described in Note 1 to the Town’s accompanying financial statements, using the modified cash basis of accounting. Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the Town’s 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.
Expenditures 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 limited as to reimbursement. Matching costs (the Town’s share of certain program costs) are not included in the reported expenditures.
The Town is an independent municipal corporation. All Federal grant operations of the Town are included in the scope of the single audit.
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. For the year ended June 30, 2025, the Town received $0 in non-monetary assistance.
The Town did not elect to use the 10% de minimus cost rate. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Town’s policy is not to charge federal award programs with indirect costs.
During fiscal year 2025, the Town of Brattleboro, Vermont recognized and reported expenditures on the Schedule of Expenditures of Federal Awards (SEFA) related to amounts payable to a contractor under Drinking Water State Revolving Funds, ALN 66.468. The underlying services or activity giving rise to these costs occurred in a prior fiscal year; however, the Town's obligation to pay the contractor was contingent on the outcome of litigation that remained unresolved as of the FY24 SEFA report date and was therefore not recognized in that period. The litigation was resolved during fiscal year 2025, at which point the Town's obligation became fixed and determinable. Accordingly, in accordance with 2 CFR § 200.502, the related expenditures are reported on the FY25 SEFA as the period in which the award expenditure was incurred, based on the date the Town's liability was established rather than the period in which the underlying services were performed.
No insurance is carried specifically to cover equipment purchased with Federal funds. Equipment purchased with Federal funds is covered by the Town’s casualty insurance policy.