Notes to SEFA
Title: Note 2
Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project.
De Minimis Rate Used: Both
Rate Explanation: The City has elected to use the 10% de minimis indirect cost rate; however, the City has not recovered any indirect cost as a result.
Extensive compliance tests, as required by the Uniform Guidance, were performed on the Coronavirus State and Local Fiscal Recovery Funds and the HOME Investment Partnership Program, which represents 75% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards. The 40% test was satisfied as follows: Coronavirus State and Local Fiscal Recovery Funds $7,726,450; Community Development Block Grants/Entitlement Grants 2,439,176; HOME Investment Partnerships Program 422,759; Highway Planning and Construction 163,249; Edward Bryne Memorial JAG Program 34,580; Assistance to Firefighters Grant 23,810. Total Federal Expenditures $10,810,024 X 40%=4,324,010. Minimum Amount Which Must Be Tested. The Coronavirus State and Local Fiscal Recovery Funds and the HOME Investment Partnership Program are major programs (i.e. must be tested). The major programs exceed $4,324,010 and, therefore, represent the only programs to which the specific compliance requirements must be applied.