Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. 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 reimbursements.
De Minimis Rate Used: N
Rate Explanation: The City of Elizabeth City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal
and State grant activity of the City of Elizabeth City under the programs of the federal government and the
State of North Carolina for the year ended June 30, 2022. The information in this SEFSA is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) and the State Single Audit Implementation Act. Because the SEFSA presents only a select
portion of the operations of the City of Elizabeth City, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Elizabeth City.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. 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 reimbursements.
De Minimis Rate Used: N
Rate Explanation: The City of Elizabeth City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. 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 reimbursements.
Title: Indirect Cost
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. 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 reimbursements.
De Minimis Rate Used: N
Rate Explanation: The City of Elizabeth City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The City of Elizabeth City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: Loans Outstanding
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. 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 reimbursements.
De Minimis Rate Used: N
Rate Explanation: The City of Elizabeth City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The City of Elizabeth City has outstanding loans from federal and State funding sources that are not required
to be presented with the Schedule because there are no continuing requirements beyond the repayment of
the loan balances in accordance with loan agreement provisions. The loan funds were presented in the
Schedule in the years of their expenditures.
The following is a summary of the changes in the City’s long-term outstanding loan balances of the NC
Department of Environmental Quality-Division of Water Infrastructure for the fiscal year ended June 30,
2022: