Notes to SEFA
Title: Loans
Accounting Policies: The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-profit Organizations. Therefore, the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financialstatements.Federal assistance, per the Schedule, includes expenditures of grant funds. Expenditures of grant funds are made for purposes specified by the granting agency. The granting agency retains the right to disallow certain reimbursements and expenditures claimed based on audit findings. In the event of final disallowance, the funds will be reimbursed from the Citys unrestricted net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City has loans payable outstanding as of September 30, 2022, related to the capitalization grants for the clean water state revolving fund (CFDA #66.458) in the amount of $6,842,426.