Notes to SEFA
Accounting Policies: The schedule of expenditures of federal awards has been prepared in accordance with the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when the goods or services are received or earned, and include amounts paid as well as accounts payable at year end, but do not include encumbrances. Encumbrances are commitments of the City for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.