Title: (1) General
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the City of Anaheim, California (the City). The Schedule includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies. The City’s reporting entity is defined in note 1 to the City’s financial statements.
Title: (2) Basis of Accounting
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
The Schedule is presented using the accrual basis of accounting.
Title: (3) Relationship to Financial Statements and Federal Financial Reports
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
Information reported in the Schedule agrees with the amounts reported in both the financial statements and related federal financial reports for the major federal programs. Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government‑wide financial statements and intergovernmental revenues in the fund statements.
Title: (4) Community‑Based Loan Programs
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
The City has loans outstanding under the Community Development Block Grants (CDBG) – Entitlement Grants Cluster, Home Investment Partnerships Program, and the Community Development Block Grant/Entitlement Grant – Neighborhood Stabilization Program that contain continuing compliance requirements. The below schedule details the amounts outstanding at June 30, 2023.
The amounts included in the accompanying Schedule consist of loans advanced to eligible participants of the programs and other administrative costs for the year ended June 30, 2023. Program income of $297,035 was generated primarily from various loan programs, reported to the U.S. Department of Housing and Urban Development (HUD), and used for eligible activities. Program income is used subject to the requirements established by HUD for each grant and when expended is included in the Schedule.
See the Notes to the SEFA for chart/table
Title: (5) Community Learning Center property acquisition loan payable
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
On September 1, 2017, the City entered into an Agreement with Los Altos V. LP (Seller) for the purchase and sale of the former Northgate Market site located at 718‑744 N. Anaheim Boulevard for the development of a Community Learning Center. The purchase price of the property was $4,750,000 of which $2,500,000 was paid in cash from the resources of the Community Development Block Grant with the balance of $2,250,000 payable to Seller over five years at an annual interest rate of 5.5%. Principal and interest of $42,978 are due on the first of each month commencing on March 1, 2018 until February 1, 2023. The loan was paid in full in the fiscal year ended June 30, 2023. The annual loan payment was funded from the restricted resources of the Community Development Block Grant yearly entitlement.
Title: (6) Indirect Cost Rate
Accounting Policies: The auditee's SEFA is presented using the accrual basis of accounting.
Revenues from federal award programs are reported in the financial statements as operating and capital grant revenues in the government wide financial statements and intergovernmental revenues in the fund statements.
The auditee includes federal awards received directly from federal agencies as well as federal awards passed through the State of California and other agencies on their SEFA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414.
For the sponsored programs where the auditee claims indirect costs, the auditee’s internal indirect cost rate is used.
The City did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414. For the sponsored programs where the City claims indirect costs, the City’s internal indirect cost rate is used.