Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: Accrual Basis, GAAP
De Minimis Rate Used: N
Rate Explanation: Grants were for direct cost reimbursement only
The accompanying schedule of expenditures of federal awards includes all federal grant activity of the Utility Board of the City of Key West, Florida d/b/a Keys Energy Services (KEYS) and is presented on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America as applicable to government organizations. The information in this 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). 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 reimbursements. Therefore, some accounts presented in the Schedule may differ from amounts presented in, or used in preparation of basic financial statements. Because the Schedule presents only a selected portion of the operations of KEYS, it is not intended to and does not present the financial position or cash flows of KEYS.
Title: Note 2 – Indirect Cost Rate
Accounting Policies: Accrual Basis, GAAP
De Minimis Rate Used: N
Rate Explanation: Grants were for direct cost reimbursement only
KEYS has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.