Audit 297023

Title: Federal Loan Program Accounting Policies: The information in the Schedule is presented in accordance with the requiredments of Title 2 US code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City's summary of significant accounting policies is presented in Note (1) to the City's basic financial statements for the year ended Deptember 30, 2023. Such expendiutures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursmement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimum cost rate. In the fiscal year ending September 30, 2021, the City received two low interest loans. The first is a $2,187,000 capitalization grant from the Drinking Water State Revolving Funds, Assistance Listing Number 66.468. The City’s expenditures of this grant are as follows: Expended FY Ending 9/30/2021 $111,711 FY Ending 9/30/2022 - FY Ending 9/30/2023 261,511 Total $373,222 The second federal loan program was a Capitalization Grant for Clean Water State Revolving Funds in the amount of $2,400,000. The funds expended are as follows: Expended FY Ending 9/30/2021 $157,433 FY Ending 9/30/2022 47,892 FY Ending 9/30/2023 57,008 Total $262,333