Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles 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: Indirect costs are not allocated to federal grants
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Billings, Montana for the year ended June 30, 2023. The City’s reporting entity is described in Note 1 in the City’s basic financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other governmental agencies, is included in the schedule. The information in this schedule is presented in accordance with 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). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements.
Title: Significant Accounting Policies
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles 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: Indirect costs are not allocated to federal grants
Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective fund. Such expenditures are recognized following the cost principles in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles 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: Indirect costs are not allocated to federal grants
The City has elected not to use the 10% De Minimis indirect cost rate allowed under the Uniform Guidance.
Title: ARPA Reconciliation
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles 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: Indirect costs are not allocated to federal grants
ARPA fund eligibility requirements are considered to be met at the time of project completion. The State of Montana withholds payments to the City until projects are complete, therefore, the City considers that the eligibility of the expenditures as being met at that point in time. Once these projects are complete and the grant funds are remitted to the City from the State is the point in which the expenditures are recognized in the Schedule of Expenditures and Federal Awards. The below reconciliation depicts the reconciliation of each of the relevant grant awards that are affected: