Audit 41664

Accounting Policies: Town of Hermon, MaineNotes to the schedule of expenditures of federal awards June 30, 2022I. Purpose of the scheduleOffice of Management and Budget (OMB)s Uniform Guidance requires a schedule of expenditures of federal awards showing total expenditures for each federal award program as identified in the Assistance Listings in the System for Award Management.II. Summary of significant accounting policiesA. Reporting entityThe accompanying schedule includes all federal award programs of the Town of Hermon, Maine for the fiscal year ended June 30, 2022. The reporting entity is defined in the notes to the financial statements of the Town.B. Basis of presentationThe information in the accompanying schedule of expenditures of federal awards is presented in accordance with the Uniform Guidance. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations.Major programsThe Uniform Guidance establishes the level of expenditures or expenses to be used in defining major federal award programs. Major programs for the Town are identified in the summary of auditors results section in the schedule of findings and questioned costs.C. Basis of accountingThe information presented in the schedule of expenditures of federal awards is presented on the modified accrual basis of accounting, which is consistent with the reporting in the Towns fund financial statements.D. Indirect cost rateThe Town has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.