Title: NOTE 1 – GENERAL
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal
financial assistance programs of the County of Merced, California (County). The County reporting entity
is defined in Note 1 within the Merced County Annual Comprehensive Financial Report (ACFR). All
federal financial assistance received directly from federal agencies, as well as federal financial assistance
passed through other government agencies, is included in the SEFA.
Title: NOTE 2 – BASIS OF ACCOUNTING
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
Title: NOTE 3 – AMOUNT PROVIDED TO SUBRECIPIENTS
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The County has provided federal awards to various organizations. The amounts provided to subrecipients from each federal program are summarized as follows: (See the Notes to the SEFA for chart/table)
Title: NOTE 4 – CALIFORNIA DEPARTMENT OF AGING GRANT PROGRAMS
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The SEFA is normally a presentation of federal awards expended. However, the terms and conditions of
agency contracts with the California Department of Aging require agencies to display state-funded
expenditures discretely along with the related federal expenditures in the SEFA. The following is a listing
of the grant programs administered by the California Department of Aging. (See the Notes to the SEFA for chart/table)
Title: NOTE 5 – LOANS OUTSTANDING
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The County participates in certain federal award programs that sponsor revolving loan programs, which
are administered by the County. These programs maintain servicing and trust arrangements with the
County to collect loan repayments. The funds are returned to the programs upon repayment of the
principal and interest. The federal government has imposed no continuing compliance requirements with
respect to the loans rendered under the programs other than to repay the loans, except for the Economic
Development Administration (EDA) Revolving Loan Funds, which do impose continuing compliance
requirements in addition to repayment of the loans.
The following is a summary of the loan programs maintained by the County, and their activities and
balances, as of and for the year ended June 30, 2023: (See the Notes to the SEFA for chart/table)
Title: NOTE 6 – INDIRECT COST RATE DISCLOSURE
Accounting Policies: The accompanying SEFA is presented using the cash basis of accounting, with the exception of the
Department of Workforce Investment using the accrual basis of accounting. Within the ACFR, the basic
financial statements were presented using the accrual basis of accounting for the government-wide and
proprietary fund statements and the modified accrual basis of accounting for the governmental fund
statements.
De Minimis Rate Used: Both
Rate Explanation: The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: Crime Victim Assistance 16.575 (see notes to SEFA)
The County has elected not to use the 10 percent de minimus indirect cost rate allowed under the
Uniform Guidance for over 99% of its federal grants. The County elected to use the 10 percent de
minimus indirect cost rate for the following program: (See the Notes to the SEFA for chart/table)