Notes to SEFA
Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Schedule of Expenditures of Federal Awards is prepared using the modified accrual basis of
accounting and is presented in accordance with the requirements of the Uniform Guidance.
Measurement Focus
The determination of when an award is expended is based on when the activity related to the award
occurred.
Program Type Determination
Type A programs are defined as federal programs with federal expenditures exceeding the larger of
$750,000, or 3% of total federal expenditures. The threshold of $750,000 was used in distinguishing
between Type A and Type B programs.
Method of Major Program Selection
The risk-based approach was used in the selection of federal programs to be tested as major
programs. The City of Savannah, Georgia (the “City”) qualified as a low-risk auditee for the fiscal year
ended December 31, 2023.
Program Income
Expenditures of program income are recognized on the Schedule of Expenditures of Federal Awards
when the qualifying expenditure has been incurred.
Indirect Cost Rate
During 2023, the City did not use the de-minimis indirect cost rate. Indirect costs are charged based
on an indirect cost plan.
NOTE 2. REVOLVING LOAN FUND
As of December 31, 2023, the amount reported for the Economic Development Administration (“EDA”)
revolving loan fund is calculated as follows:
Cash on hand $ 1,137,565
Notes receivable 362,207
1,499,772
EDA portion of the total 75%
Total federal expenditures for the EDA program $ 1,124,829
De Minimis Rate Used: N
Rate Explanation: During FY23, the City did not use the de-minimis indirect cost rate.