Notes to SEFA
Title: Note 1 ‐ Basis of Presentation
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting – when they
become a demand on current available financial resources in the governmental fund types and on the full
accrual basis of accounting – when expenditures are incurred in the proprietary fund types. 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. The City received federal awards both
directly from federal agencies and indirectly through pass‐through entities. Federal financial assistance provided
to a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance
provided to subrecipients during the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Ames, Iowa, (City) under programs of the federal government for the year ended June 30, 2023.
The information 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). Because the schedule presents only a selected portion of the operations of the City, it is not
intended to and does not present the financial position, changes in net position or fund balance, or cash flows of
the City.
Title: Note 2 ‐ Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting – when they
become a demand on current available financial resources in the governmental fund types and on the full
accrual basis of accounting – when expenditures are incurred in the proprietary fund types. 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. The City received federal awards both
directly from federal agencies and indirectly through pass‐through entities. Federal financial assistance provided
to a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance
provided to subrecipients during the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis cost rate.
Expenditures reported in the schedule are reported on the modified accrual basis of accounting – when they
become a demand on current available financial resources in the governmental fund types and on the full
accrual basis of accounting – when expenditures are incurred in the proprietary fund types. 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. The City received federal awards both
directly from federal agencies and indirectly through pass‐through entities. Federal financial assistance provided
to a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance
provided to subrecipients during the year ended June 30, 2023.
Title: Note 3 ‐ Indirect Cost Rate
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting – when they
become a demand on current available financial resources in the governmental fund types and on the full
accrual basis of accounting – when expenditures are incurred in the proprietary fund types. 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. The City received federal awards both
directly from federal agencies and indirectly through pass‐through entities. Federal financial assistance provided
to a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance
provided to subrecipients during the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis cost rate.
The City has not elected to use the 10% de minimis cost rate.