Title: NOTE A—BASIS OF PRESENTATION
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: No indirect costs were expended with federal awards.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Dunsmuir (the City) under programs of the federal government for the fiscal year ended June 30, 2022. The information in this Schedule is presented in accordance with the audit 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, it is not intended to and does not present the financial net position or changes in net position of the City.
Title: NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: No indirect costs were expended with federal awards.
1. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, when applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Also, when applicable, recognition is following the Uniform Guidance for federal awards granted after December 26, 2014.
2. Pass-through entity identifying numbers are presented where available.
Title: NOTE C—SUBRECIPIENTS
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: No indirect costs were expended with federal awards.
Of the federal expenditures presented in the schedule, the City provided $155,823 of the federal awards to subrecipients.
Title: NOTE D—INDIRECT COST RATE
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: No indirect costs were expended with federal awards.
The City did not elect to use the 10% de Minimis indirect cost rate on the federal awards presented in this schedule.
Title: NOTE E—LOAN BALANCE
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: No indirect costs were expended with federal awards.
During the fiscal year, the Federal award program from the United States Department of Agriculture (USDA), titled “Water and Waste Disposal Systems for Rural Communities” (10.760), for the construction of the Water Mainline Replacement Project, continued with Federal funding in the form of interim construction loan financing until May 2023, when it was paid off by the RD/RUS USDA loan financing after the completion of construction (See Note 7). The balance of the permanent long-term loan at the end of audit period, June 30, 2023, was $7,934,000. The total Federal expenditures reported on the Schedule is $2,746,452, of which $1,802,930 was from the current year interim financing loan increase. Since there are no continuing compliance requirements for this loan at the end of the period, only current year federal expenditures are included in the Schedule.