Notes to SEFA
Title: Federal Loans
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for proprietary 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City was approved by the Department of Housing and Urban Development to receive a Section 108 loan totaling $2,400,000 to assist with the funding of the Balboa Village Improvement Program. The amount listed for this loan includes the beginning of the period loan balance. The balance owed at the end of the period is $208,000.Both the current and prior year loan balances are reported on the City's schedule of Changes in Long-Term Liabilities (Note 6) in the Citys financial statements for the fiscal year ended June 30, 2022.