Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of City of Hastings under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of City of Hastings, it is not intended to and does not present the financial position, changes in financial position, or cash flows, as applicable, of the City of Hastings.
Title: State Clean Water/Drinking Water Revolving Funds
Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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.
On September 17, 2013, the City of Hastings entered into an agreement with the Department of Natural Resources and Environment, acting through the Michigan Finance Authority, for project improvements to the Wastewater Treatment Plant. The project was financed by a loan from the State of Michigans Clean Water State Revolving Fund. The balance of the loan at June 30, 2022, was $723,853.On March 27, 2020, the City of Hastings entered into an agreement with the Department of Environment, Great Lakes, and Energy, acting through the Michigan Finance Authority, for additional project improvements to the Wastewater Treatment Plant. The project is financed by a loan from the State of Michigans Clean Water State Revolving Fund, which includes state and federal funding sources, and had a total outstanding balance of $8,894,873 at June 30, 2022. The federal portion of the loan balance, as presented on the schedule of expenditures of federal awards, was $6,040,894 at June 30, 2022. Revenue is not recognized for the federal loan programs and the associated debt is recorded upon receipt of reimbursement funds.
Title: Federal Income Reconciliation
Accounting Policies: Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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 ExpendituresPer ScheduleFederalof FederalRevenue PerFinancialFinancialAssistanceStatementsDifferenceHighway Planning and Construction $72,444 $72,444 $- Clean Water State Revolving Fund Cluster 1,293,949 - 1,293,949 Universal Service Fund - 5,194 (5,194) $1,366,393 $77,638 $1,288,755