Notes to SEFA
Accounting Policies: Note 1. Basis of PresentationThis accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the Town under programs of the federal government for the year ended June 30, 2022. Theinformation in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of operations of the Town, it is not intended to and does not present the financial position, changesin net assets, or cash flows of the Town.Note 2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the modified basis of accounting. Such expendituresrecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited to reimbursement.Receipts reported on the Schedule are reported on a modified cash basis accounting. monies received underCFDA 20.106 were subsequently passed through to a subrecipient that the Towns management does notconsider to be a component unit of the Town.Note 3. Indirect Cost RateThe Town has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance.25
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.