Notes to SEFA
Title: NOTE 3 RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The accompanying SEFA is presented using the modified-accrual basis of accounting which is described in Note 1 of the notes to the Citys basic financial statements, except that the lending of certain federal award monies and acquisition of capital assets are reported as expenditures of federal funds. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant expenditure reports for the year ended June 30, 2022, which have been submitted to grantor agencies, will, in some cases, differ from the amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals.
Title: NOTE 4 RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE AN
Accounting Policies: The accompanying SEFA is presented using the modified-accrual basis of accounting which is described in Note 1 of the notes to the Citys basic financial statements, except that the lending of certain federal award monies and acquisition of capital assets are reported as expenditures of federal funds. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying SEFA agree, in all material respects, to amounts reported within the Audited Financial Statements as of and for the year ended June 30, 2022.
Title: NOTE 5 LOAN RECEIVABLE
Accounting Policies: The accompanying SEFA is presented using the modified-accrual basis of accounting which is described in Note 1 of the notes to the Citys basic financial statements, except that the lending of certain federal award monies and acquisition of capital assets are reported as expenditures of federal funds. 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.
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 $251,895, which includes interest of $24,700, are outstanding as of June 30, 2022. During fiscal year 2021-22, there were no new loans made with CDBG funds.