Notes to SEFA
The accompanying schedule of expenditures of federal awards and state financial assistance projects (the “Schedule”) is presented in accordance with the requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the “Uniform Guidance”), and Chapter 10.550, Rules of the Auditor General. 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, changes in net position, or cash flows of the Town.
Expenditures reported on the Schedule are reported on the same basis of accounting as the related fund to which the expenditures relate. As such, certain expenditures reported on the Schedule related to governmental funds are reported using the modified accrual basis of accounting. Expenditures reported on the Schedule related to business-type activities are reported on the accrual basis of accounting. Expenditures reported on the Schedule are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.550, Rules of the Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Town did not elect to use the 15 percent de minimis indirect cost rate.