Notes to SEFA
Title: Reconciliation of PENNVEST Draws and Expenditures
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of the City of Lancaster (City) and is presented on the modified accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Citys financial statements. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following is a reconciliation of the draws made during the year ended December 31, 2022 to the total expenditures, as presented on the schedule for loan 802000: Draws received during year ended December 31, 2022 - $3,412,019; Expenditures paid prior to year ended December 31, 2021, draw received subsequent to December 31, 2021 - ($250,462); Expenditures paid prior to year ended December 31, 2022, draw received subsequent to December 31, 2022 - $2,357; Current year expenditures, as reported on the Schedule of Expenditures of Federal Awards - $3,163,914. The balance of the loan outstanding as of December 31, 2022 was $4,803,196.