Notes to SEFA
Title: Basis of Presentation
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the City of Costa Mesa (the City) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present
the financial position, changes in net assets or cash flows of the City. The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
Title: Summary of Significant Accounting Policies
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting for those grants that were recorded in governmental funds, and on the accrual basis of accounting for those grants that were recorded in proprietary funds. Such expenditures for part of the year are recognized following the cost principles contained in OMB Circular 87, Cost Principles for State, Local, and Indian Tribal Governments, and for part of the year contained in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: Subrecipients
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.
For the fiscal year ended June 30, 2023, payments to subrecipients consisted of the following:
Community Development Block Grant B-21-MC-06-0503 $ 130,151
Coronavirus State and Local Fiscal
Recovery Funds Mercy House 3,665,000
Total $3,795,151