Notes to SEFA
Accounting Policies: Note 1 - Basis of Accounting
The City accounts for awards under federal programs in the General and Special Revenue governmental funds.
In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and
other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are
presented where available.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused balances
are returned to the grantor at the close of specified project periods. The City has elected not to use a 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance on an overall basis.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 4. last sentence.