Notes to SEFA
Title: Note 1: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds. 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.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Cedar Rapids, Iowa and the Eastern Iowa Airport, a discretely presented component unit for the year ended June 30, 2023. The accompanying schedule of expenditures of federal awards does not include federal grant activity of the Cedar Rapids/Linn County Solid Waste Agency, a discretely presented component unit, because they did not have federal expenditures 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Cedar Rapids, Iowa, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Cedar Rapids, Iowa.
Title: Note 4: Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds. 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.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
After a presidentially declared disaster, FEMA reimburses eligible costs. The federal government makes reimbursements in the form of cost-shared grants that require state matching funds. Expenditures are recognized on the Schedule when both the expenditure has been incurred and FEMA has approved the project worksheet. The City recorded $28,130,770 of expenditures on the current year Schedule that were incurred in prior fiscal years.
Title: Note 5: Revolving Loan Program
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds. 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.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The City is indebted to the Iowa Finance Authority as the result of issuance of bonds listed below. The bonds were sold under the Capitalization Grants for Drinking Water State Revolving Funds for financing qualified improvements. The amounts reflected in the Schedule represents expenditures incurred during the year ended June 30, 2023. The following table contains information about these bonds.
See the Notes to the SEFA for chart/table.