Notes to SEFA
Title: Note D - Matching Requirements
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized
following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be
allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Certain federal programs require the City to contribute non-federal funds (matching funds) to support federally funded programs. The City has met its matching requirements. The Schedule does not include the expenditure of non-federal funds.
Title: Note E - Community Development Block Grant (CDBG) and Home Investment Partnership
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized
following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be
allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City has revolving loan fund (RLF) programs in order to provide low-interest loans to businesses to create jobs for low- and
moderate-income job seekers, rehabilitated blighted storefronts and to provide funds for home rehabilitation for low- and
moderate-income households. The federal Department of Housing and Urban Development (HUD) grants money for these
loans to the City. The initial loan of this money is recorded as a disbursement on the Schedule of Federal Awards Expenditures.
Loans repaid including interest are used to make additional loans. Subsequent loans are subject to the same compliance
requirements imposed by HUD as the initial loans; and therefore, are reports as federal expenditures in the year of
disbursement. Prior year outstanding balances are reported in the schedule below. These loans are collateralized by equipment
and mortgages. The current cash balance on the Citys local program income account as of December 31, 2022 is $176,487.