Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include the federal and state
activities of the City of Lakeland, Florida. This schedule summarizes the expenditures incurred under all federal programs and state
projects by the City of Lakeland, Florida for the fiscal year ended September 30, 2023. For purposes of this schedule, federal
programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of
the federal and state government with expenditures during the fiscal year ended September 30, 2023. Federal programs and state
projects passed through to other government agencies, if any, are also included in the schedule. Grant-related expenditures for the
governmental fund types are presented using the modified accrual basis of accounting. Grant-related expenditures for the
proprietary fund types are presented using the accrual basis of accounting.
The City maintains separate grant-related accounts in the general ledger system. Individual grant revenue and expense accounts
are assigned at the time the City is awarded a grant and it is approved by the City Commission. All grant revenues and eligible
expenses are recorded in the individual accounts. The City’s accounting policies relating to encumbrances, receivables, and
designations of fund balance, and other financial matters are applied to the grant accounts.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include the federal and state
activities of the City of Lakeland, Florida. This schedule summarizes the expenditures incurred under all federal programs and state
projects by the City of Lakeland, Florida for the fiscal year ended September 30, 2023. For purposes of this schedule, federal
programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of
the federal and state government with expenditures during the fiscal year ended September 30, 2023. Federal programs and state
projects passed through to other government agencies, if any, are also included in the schedule. Grant-related expenditures for the
governmental fund types are presented using the modified accrual basis of accounting. Grant-related expenditures for the
proprietary fund types are presented using the accrual basis of accounting.
The information in these schedules is presented in accordance with the requirements of 2 CFR 200 – Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 215.97, Florida Statutes, and Chapter 10.550,
Rules of the State of Florida Auditor General. Therefore, some amounts presented in these schedules may differ from amounts
presented in, or used in the preparation of, the basic financial statements. The City has elected not to use the 10-percent de
minimis indirect cost rate allowed under the Uniform Guidance.
The City maintains separate grant-related accounts in the general ledger system. Individual grant revenue and expense accounts
are assigned at the time the City is awarded a grant and it is approved by the City Commission. All grant revenues and eligible
expenses are recorded in the individual accounts. The City’s accounting policies relating to encumbrances, receivables, and
designations of fund balance, and other financial matters are applied to the grant accounts.
The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agency
as a result of an audit or any claim for reimbursement to the grantor agencies, the expenditures would become a liability of the City.
All grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and
regulations. Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in
prior years.
There were no non-cash awards or Federal Insurance maintained in the current year.
Title: NOTE B - LOAN PAYABLE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include the federal and state
activities of the City of Lakeland, Florida. This schedule summarizes the expenditures incurred under all federal programs and state
projects by the City of Lakeland, Florida for the fiscal year ended September 30, 2023. For purposes of this schedule, federal
programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of
the federal and state government with expenditures during the fiscal year ended September 30, 2023. Federal programs and state
projects passed through to other government agencies, if any, are also included in the schedule. Grant-related expenditures for the
governmental fund types are presented using the modified accrual basis of accounting. Grant-related expenditures for the
proprietary fund types are presented using the accrual basis of accounting.
The City maintains separate grant-related accounts in the general ledger system. Individual grant revenue and expense accounts
are assigned at the time the City is awarded a grant and it is approved by the City Commission. All grant revenues and eligible
expenses are recorded in the individual accounts. The City’s accounting policies relating to encumbrances, receivables, and
designations of fund balance, and other financial matters are applied to the grant accounts.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
The City enters into low interest loan agreements with the State of Florida Department of Environmental Protection to finance the
cost of specified capital improvements to the water and wastewater systems. These loans carry a fixed interest rate of 0.00% -
2.960% and are to be repaid over a period of 24 years. The loans are secured by a pledge of excess revenues of the water and
wastewater systems, and by a pledge of certain amounts, deposited into a loan amortization account and loan amortization reserve
established by the City for the purpose of funding future debt service on the loans. Amounts required for deposit are classified as
restricted assets.
The proceeds from the loans are disbursed to the City on a reimbursement basis as eligible construction expenditures are incurred.
The total amount of the loans outstanding at September 30, 2023 is $3,330,794.
Title: NOTE C - PRIOR YEAR EXPENDITURES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include the federal and state
activities of the City of Lakeland, Florida. This schedule summarizes the expenditures incurred under all federal programs and state
projects by the City of Lakeland, Florida for the fiscal year ended September 30, 2023. For purposes of this schedule, federal
programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of
the federal and state government with expenditures during the fiscal year ended September 30, 2023. Federal programs and state
projects passed through to other government agencies, if any, are also included in the schedule. Grant-related expenditures for the
governmental fund types are presented using the modified accrual basis of accounting. Grant-related expenditures for the
proprietary fund types are presented using the accrual basis of accounting.
The City maintains separate grant-related accounts in the general ledger system. Individual grant revenue and expense accounts
are assigned at the time the City is awarded a grant and it is approved by the City Commission. All grant revenues and eligible
expenses are recorded in the individual accounts. The City’s accounting policies relating to encumbrances, receivables, and
designations of fund balance, and other financial matters are applied to the grant accounts.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
The amounts reported on the SEFA for Airport Improvement Program (AL 20.106) as current year expenditures includes ($10,847)
of expenses incurred in prior fiscal years that were ineligible grant expenditures as a result of grant amendments in the current year.
The amounts reported on the SEFA for Highway Planning and Construction (AL 20.205) as current year expenditures includes
($3,675) of expenses incurred in prior fiscal years that were ineligible grant expenditures as a result of grant amendments in the
current year.
The amounts reported on the SEFA for Disaster Grants - Public Assistance (Presidentially Declared Disasters) (AL 97.036) as
current year expenditures includes $18,969 of expenses incurred in prior fiscal years that were eligible grant expenditures.
The amounts reported on the SEFA for Aviation Grant Programs (CSFA 55.004) as current year expenditures includes $2,500,000
of expenses incurred in prior fiscal years that were eligible grant expenditures as a result of grant amendments in the current year.
The amounts reported on the SEFA for Florida Shared-Use Nonmotorized Trail Network Program (CSFA 55.038) as current year
expenditures includes ($621.68) of expenses incurred in prior years that were ineligible grant expenditures.
The amounts reported on the SEFA for Department of Justice Direct Programs (CFSA 16.738) as current year expenditures
includes $830.85 of expenses incurred in prior years that were eligible grant expenditures.