Notes to SEFA
Accounting Policies: 1. REPORTING ENTITYThe accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of the City. 2. BASIS OF ACCOUNTINGThe 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. These expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent, adjustments or credits made in the normal course to amounts reported as expenditures in prior years. 4. INDIRECT COST RATEThe City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 5. PRIOR YEAR EXPENDITURESExpenditures in the amount of $16,306 related to the federal grant program, Hazard Mitigation Grant Programs, Assistance Listing 97.039, and expenditures in the amount of $194,431 related to the federal program Disaster Grants Public Assistance, Assistance Listing 97.036, were incurred in the prior year. However, approval was not provided by the granting agencies until fiscal year 2022. Accordingly, these expenditures have been listed on the fiscal year 2022 SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.