Notes to SEFA
Title: Note 1 Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures arerecognized following either the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, whereincertain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity ofthe City of Chillicothe, Ohio (the City) under programs of the federal government for the year ended December 31,2022. The information on this schedule is prepared in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of theCity, it is not intended to and does not present the financial position, changes in net position, or cash flows of theCity.
Title: Note 4 Formula Grants for Rural Areas and Tribal Transit Program
Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures arerecognized following either the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, whereincertain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Cash receipts from the Ohio Department of Transportation are commingled with State grants and other local monies.It is assumed federal monies are expended first.
Title: Note 5 Matching Requirements
Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures arerecognized following either the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, whereincertain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Certain federal programs require that the City contribute non-federal funds (matching funds) to support thefederally-funded programs. The City has complied with the matching requirements. The expenditure of nonfederalmatching funds is not included on the schedule.