Notes to SEFA
Title: Summary of Significant Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of City of Valdez, Alaska, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the 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 Valdez, it is not intended to and does not present the basic financial statements of City of Valdez.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedule are reported on the modified 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. City of Valdez has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Subrecipients
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of City of Valdez, Alaska, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the 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 Valdez, it is not intended to and does not present the basic financial statements of City of Valdez.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City of Valdez did not pass any federal funds through to subrecipients during the year ended December 31, 2022.
Title: Reporting Entity
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of City of Valdez, Alaska, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the 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 Valdez, it is not intended to and does not present the basic financial statements of City of Valdez.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City of Valdez, for purposes of the supplementary Schedule of Expenditures of Federal Awards, includes all the funds of the primary government. It does not include the component units of the City of Valdez as follows:Valdez City SchoolsThe City of Valdezs basic financial statements include $2,034,536 of Federal funds expended for Valdez City Schools, a component unit of the City of Valdez. These monies are excluded from this schedule. These monies are subject to separate reports issued for Valdez City Schools dated October 21, 2022.Providence Valdez Medical CenterThe City of Valdezs basic financial statements include $164,000 of Federal funds expended for Providence Valdez Medical Center, a component unit of the City of Valdez. These monies are excluded from this schedule. These monies are subject to separate reports issued for Providence Valdez Medical Center dated April 28, 2023.