Notes to SEFA
Title: General
Accounting Policies: X1UJYH3W4LJ7
De Minimis Rate Used: Y
Rate Explanation: The City elected to use the 10% de minimis cost rate.
The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal awards of the city. The City's reporting entity is defined in Note 1 of the basic financial statements. Federal awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal Awards.
Title: Basis of Presentation
Accounting Policies: X1UJYH3W4LJ7
De Minimis Rate Used: Y
Rate Explanation: The City elected to use the 10% de minimis cost rate.
The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic financial statements. Federal grants are considered to be earned to the extent of expenditures made under the provision of the grant; and accordingly, when such funds are received, and they are recorded as unearned revenue until earned.
Title: Indirect Cost Allocation
Accounting Policies: X1UJYH3W4LJ7
De Minimis Rate Used: Y
Rate Explanation: The City elected to use the 10% de minimis cost rate.
The City of Artesia elected to use the 10% de minimus rate.
Title: Sub-Recipients of Federal Awards
Accounting Policies: X1UJYH3W4LJ7
De Minimis Rate Used: Y
Rate Explanation: The City elected to use the 10% de minimis cost rate.
The City does not have any sub-recipients for their federal awards.
Title: Loan Balance
Accounting Policies: X1UJYH3W4LJ7
De Minimis Rate Used: Y
Rate Explanation: The City elected to use the 10% de minimis cost rate.
There is no new balances to any federal loans.