Notes to SEFA
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The City of Nashwauk, Minnesota has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Nashwauk, Minnesota, under programs of the federal government for the year ended December 31, 2022. 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 City of Nashwauk, Minnesota, it is not intended to and does not present the financial position, changes in net position, or cash flows of City of Nashwauk, Minnesota
Title: NOTE C -CAPITALIZATION GRANT
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The City of Nashwauk, Minnesota has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal expenditures related to the Capitalization Grants for Clean Water State Revolving Funds were reimbursed by loan proceeds. The outstanding loan balance of $1,970,880 at December 31, 2022 is comprised entirely of funds received. The loan is payable to the Minnesota Public Facilities Authority, a department of the State of Minnesota. Balance at 12/31/2021 $1,267,580 Loan proceeds 759.406 Principal payments (56,034) Balance at 12/31/2022 $1,970,880
Title: NOTE D - PASS-THROUGH ENTITIES
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The City of Nashwauk, Minnesota has elected not to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
There were no pass-through entities.