Notes to SEFA
Title: Scope of Presentation
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal financial assistance programs of the City of Newport Beach (City)
under programs of the federal government for the year ended June 30, 2023. All financial assistance received directly from federal agencies is included in the accompanying Schedule.
The information in the 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). The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform
Guidance.
Title: Basis of Accounting
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for proprietary funds. 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. Pass-through entity identifying numbers are presented where available.
Title: Federal Loans
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
The City was approved by the Department of Housing and Urban Development to receive a Section 108 loan totaling $2,400,000 to assist with the funding of the Balboa Village
Improvement Program. The amount listed for this loan includes the beginning of the period loan balance. The loan was paid in full as of June 30, 2023. Both the current and prior year loan balances are reported on the City's schedule of changes in long-term liabilities (Note 7) in the City’s financial statements for the fiscal year ended June 30, 2023.