Notes to SEFA
Title: CONTINGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for awards and financial assistance recorded in governmental funds and the
accrual basis of accounting for awards and financial assistance recorded in the proprietary funds, which are described in Note 1 to the City’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance and Chapter 69I-5, Rules of the Florida Department of Financial Services wherein certain types of expenditures are not allowable or are limited as to reimbursement, with the exception of CFDA 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not
allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Grant monies received and disbursed by the City are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the City does not believe that such
disallowances, if any would have a material effect on the financial position of the City. As of March 31, 2024, there were no material questioned or disallowed costs as a result of grant audits in process or completed.