Notes to SEFA
Title: Note 1: General
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards presents the activity of all federal awards of the City. The City of Norfolk single audit reporting entity includes the primary government and the Norfolk School Board component unit. Federal awards not received through direct programs are typically passed through the departments and agencies of the Commonwealth of Virginia.
Title: Note 2: Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
Title: Note 3: Relationship to the Basic Financial Statements
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
See Notes to SEFA for table.
Title: Note 4: Clusters
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
See Notes to SEFA for table.
Title: Note 5: Virginia Resources Authority (VRA) Loans
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City reports on the Schedule of Federal Awards, loan proceeds drawn from the VRA. The loans are a pass-through award from the U.S. Environmental Protection Agency and administered by the Virginia Department of Environmental Quality. The balances at June 30, 2023 are as follows: See Notes to SEFA for table
Title: Note 6: Indirect Cost Rate
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the fiscal year 2023, the City did not use the 10 percent de minimis cost rate for indirect cost billings to federal grants where an indirect cost is permitted. The City develops an indirect cost rate with the cost allocation plan that is used by the Department of Human Services for indirect cost billings.
Title: Note 7: Economic Adjustment Assistance - Revolving Loan Funds (RLF)
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Expenditures are recorded when the liability is incurred or measurable. The related revenue is reported net of unexpended amounts returned to grantors.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City was awarded an Economic Development Administration RLF in FY21 in the amount of $549,900 to provide permanent resources to support economic resiliency. All loans were reported in FY23. The calculation for the federal awards expended is displayed in the tables below: See Notes to SEFA for table