Notes to SEFA
Title: Note 3 - Loans Receivable
Accounting Policies: Basis of Accounting
The activity of the City’s federal award programs is reported within the General Fund and the special revenue funds of the City. The City utilizes the modified accrual basis of accounting for the General Fund and the special revenue funds as described in Note 1 to the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the County of Los Angeles, the State of California Governor’s Office of Emergency Services, the California Department of Transportation, and the State of California Department of Finance are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
Assistance Listing Numbers
The assistance listing numbers included in the accompanying Schedule were determined based on the program name, review of grant contract information, and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.
Indirect Cost Rate
The City did not elect to use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Loans made with Community Development Block Grant (CDBG) funds in the amount of $250,237, which includes interest of $23,200, are outstanding as of June 30, 2023. During the year ended June 30, 2023, there were no new loans made with CDBG funds.