Audit 301494

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation - The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City of Cullman, Alabama, under programs of the federal government for the year ended September 30, 2023. The information in this schedule is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Because the schedule presents only a selected portion of the operations of the City of Cullman, Alabama, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Cullman, Alabama. Basis of Accounting - Expenditures reported on the schedule are reported on the economic resources measurement focus. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: THE AUDITEE USE THE DEMINIMUS COST RATE FOR FEDERAL AWARDS THAT WERE CHARGED INDIRECT COSTS. The Alabama Water Pollution Control Authority administered this loan through the Capitalization Grants for Clear Water State Revolving Funds program (Alabama Department of Environmental Management Assistance Listing 66.458). For purposes of this schedule, the amount reported includes the outstanding loan balances at the end of the fiscal year, including funds drawn down from the U.S. Department of Treasury and repayments of loans recognized as program income. As of September 30, 2023, the outstanding loan balance totaled $6,230,000.