Notes to SEFA
Title: Note 1: Basis of Presentation
Accounting Policies: See Note 2
De Minimis Rate Used: N
Rate Explanation: See Note 2
The accompanying schedule of Federal and State awards (SEFSA) includes the Federal and State grant activity of the City of Kinston under the programs of the Federal government and the State of North Carolina for the year ended June 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations PArt 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. 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 position, changes in net position, or cash flows of the City.
Title: Note 2: Summary of Significant Accounting Policies
Accounting Policies: See Note 2
De Minimis Rate Used: N
Rate Explanation: See Note 2
Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City of Kinston has elected not to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3: Loans Outstanding
Accounting Policies: See Note 2
De Minimis Rate Used: N
Rate Explanation: See Note 2
The City of Kinston had the following loan balances outstanding at June 30, 2023 for loans that the grantor/pass-through grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFSA. The balance of loans outstanding at June 30, 2023 consists of:
Program Title: Capitalization Grants for Drinking Water State Revolving Fund AL#: 66.468 Pass-Through Grantor Number: H-LRX-F-19-1949 Amount Outstanding: $ 1,299,887