Title: Note 1 - General
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basic financial statements of the Municipality of Carolina as of and for the fiscal year ended June 30, 2023. The expense reported for the Section 8 Housing Choice Voucher Program follows the accrual basis of accounting, which is the basis of accounting required by the US Department of Housing and Urban Dvelopment, through the Real Estate Assessment Center (REAC). A reconciliation is presented in note 1 to show the difference between the expenditure amount reported in SEFA (as defined by REAC) and the expenditure reported in governmental funds for the Section 8 Housing Choice Voucher Program.
De Minimis Rate Used: N
Rate Explanation: The auditee dis not use the de minimis cost rate since all costs are charged directly to the federal awards, including space and utility costs, and administrative costs, as applicable.
The accompanying Schedule of Expenditures of Federal Awards presents the expenditures for the fiscal year ended June 30, 2023, of all the Federal programs of the Municipality of Carolina.
Title: Note 2 - Accounting basis
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basic financial statements of the Municipality of Carolina as of and for the fiscal year ended June 30, 2023. The expense reported for the Section 8 Housing Choice Voucher Program follows the accrual basis of accounting, which is the basis of accounting required by the US Department of Housing and Urban Dvelopment, through the Real Estate Assessment Center (REAC). A reconciliation is presented in note 1 to show the difference between the expenditure amount reported in SEFA (as defined by REAC) and the expenditure reported in governmental funds for the Section 8 Housing Choice Voucher Program.
De Minimis Rate Used: N
Rate Explanation: The auditee dis not use the de minimis cost rate since all costs are charged directly to the federal awards, including space and utility costs, and administrative costs, as applicable.
Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared followiing the modified accrual basis of accounting, which is further explained in Note 1 of the Municipality's basic financial statements as of and for the fiscal year ended June 30, 2023. The amount of expenditures, as defined by the US Department of Housing and Urban Development (HUD), through the Real Estate Assessment Center (REAC) reporting requirements, are determined and reported following the accrual basis of accounting. Note 2 to the SEFA presents a reconciliation between the amounts reported in SEFA and the expenditures reported in the Municipality's financial statements (Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance) for the Section 8 Housing Choice Voucher Porgram.
Title: Note 3 - Federal Notes Payable
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basic financial statements of the Municipality of Carolina as of and for the fiscal year ended June 30, 2023. The expense reported for the Section 8 Housing Choice Voucher Program follows the accrual basis of accounting, which is the basis of accounting required by the US Department of Housing and Urban Dvelopment, through the Real Estate Assessment Center (REAC). A reconciliation is presented in note 1 to show the difference between the expenditure amount reported in SEFA (as defined by REAC) and the expenditure reported in governmental funds for the Section 8 Housing Choice Voucher Program.
De Minimis Rate Used: N
Rate Explanation: The auditee dis not use the de minimis cost rate since all costs are charged directly to the federal awards, including space and utility costs, and administrative costs, as applicable.
Note 3 to the SEFA presents the outstanding balances at June 30, 2023 of Federal notes under Section 108 Loan Guarantees, which totalize $5,138,000 and are also reported as part of Note 11 of the Municipality's basic financial Statements (General Long-term debt).