Notes to SEFA
Accounting Policies: Such expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative
amounts shown on the Schedule represent adjustments or credits made in the normal course of
business to amounts reported as expenditures in prior years.
The financial statements for the governmental fund types contained in the Town’s basic financial
statements are prepared on the modified accrual basis of accounting. The government-wide financial
statements are prepared on the full accrual basis of accounting.
• Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities for the current period.
• Expenditures are generally recorded when the related fund liability is incurred, if measurable.
Expenditures reported on the Schedule are reported on the 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 are limited as to reimbursement. Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the preparation
of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.