Notes to SEFA
Title: 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented
where available.
Grant funds receivable and related revenues are recognized as the related capital project expenditures
are incurred. This policy differs from actual grant billings, which are prepared in accordance with
respective grant provisions. Differences between grant funds receivable and grant funds billed are caused
primarily by planning costs incurred on construction projects that have not been finalized, architectural
and engineering costs not billed due to procedural compliance limitations, and construction costs
incurred, but unpaid. These temporary differences will reverse over the remaining award period.
Loans payable are recognized as loan funds are received. Only the receipts from the federal loan
programs during 2023 have been considered for major program determination. The outstanding balance
of the federal loan programs at December 31, 2023 that relate to capital project expenditures from prior
years were not considered for major program determination. Loan programs funded through the State of
Wisconsin Department of Administration are not subject to single audit testing.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. The District prepares the
Schedule of the Final Capital Projects' Indirect Cost Rate annually following the method previous
approved by the Environmental Protection Agency.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of the Milwaukee Metropolitan Sewerage District (the District) under programs of the federal
government for the year ended December 31, 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 District, it is
not intended to and does not present the financial position, changes in net position or cash flows of the
District.
Title: 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented
where available.
Grant funds receivable and related revenues are recognized as the related capital project expenditures
are incurred. This policy differs from actual grant billings, which are prepared in accordance with
respective grant provisions. Differences between grant funds receivable and grant funds billed are caused
primarily by planning costs incurred on construction projects that have not been finalized, architectural
and engineering costs not billed due to procedural compliance limitations, and construction costs
incurred, but unpaid. These temporary differences will reverse over the remaining award period.
Loans payable are recognized as loan funds are received. Only the receipts from the federal loan
programs during 2023 have been considered for major program determination. The outstanding balance
of the federal loan programs at December 31, 2023 that relate to capital project expenditures from prior
years were not considered for major program determination. Loan programs funded through the State of
Wisconsin Department of Administration are not subject to single audit testing.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. The District prepares the
Schedule of the Final Capital Projects' Indirect Cost Rate annually following the method previous
approved by the Environmental Protection Agency.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented
where available.
Grant funds receivable and related revenues are recognized as the related capital project expenditures
are incurred. This policy differs from actual grant billings, which are prepared in accordance with
respective grant provisions. Differences between grant funds receivable and grant funds billed are caused
primarily by planning costs incurred on construction projects that have not been finalized, architectural
and engineering costs not billed due to procedural compliance limitations, and construction costs
incurred, but unpaid. These temporary differences will reverse over the remaining award period.
Loans payable are recognized as loan funds are received. Only the receipts from the federal loan
programs during 2023 have been considered for major program determination. The outstanding balance
of the federal loan programs at December 31, 2023 that relate to capital project expenditures from prior
years were not considered for major program determination. Loan programs funded through the State of
Wisconsin Department of Administration are not subject to single audit testing.
Title: 3. Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented
where available.
Grant funds receivable and related revenues are recognized as the related capital project expenditures
are incurred. This policy differs from actual grant billings, which are prepared in accordance with
respective grant provisions. Differences between grant funds receivable and grant funds billed are caused
primarily by planning costs incurred on construction projects that have not been finalized, architectural
and engineering costs not billed due to procedural compliance limitations, and construction costs
incurred, but unpaid. These temporary differences will reverse over the remaining award period.
Loans payable are recognized as loan funds are received. Only the receipts from the federal loan
programs during 2023 have been considered for major program determination. The outstanding balance
of the federal loan programs at December 31, 2023 that relate to capital project expenditures from prior
years were not considered for major program determination. Loan programs funded through the State of
Wisconsin Department of Administration are not subject to single audit testing.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. The District prepares the
Schedule of the Final Capital Projects' Indirect Cost Rate annually following the method previous
approved by the Environmental Protection Agency.
The District has not elected to use the 10% de minimis indirect cost rate. The District prepares the
Schedule of the Final Capital Projects' Indirect Cost Rate annually following the method previous
approved by the Environmental Protection Agency.