Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Governmental fund types account for the majority of the Citys federal grant activity, with the exception of the Airport Improvement Project grants which are recorded in the airport enterprise fund. Therefore, expenditures reported in the schedule of expenditures of federal awards are recognized on the accrual basis of accounting for the airport improvement projects, and the remaining expenditures, except for subrecipient expenditures, reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they become a demand on current available financial resources. Subrecipient expenditures are recorded on the cash basis. 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.
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 activityof the City of Bismarck under programs of the federal government for the year ended December 31, 2022. The information 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 Bismarck, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City of Bismarck.
Title: LOAN PROGRAMS
Accounting Policies: Governmental fund types account for the majority of the Citys federal grant activity, with the exception of the Airport Improvement Project grants which are recorded in the airport enterprise fund. Therefore, expenditures reported in the schedule of expenditures of federal awards are recognized on the accrual basis of accounting for the airport improvement projects, and the remaining expenditures, except for subrecipient expenditures, reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they become a demand on current available financial resources. Subrecipient expenditures are recorded on the cash basis. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As of December 31, 2022, the City's liability relating to the Drinking Water State Revolving Fund (SRF) Loan (AL #66.468) is $5,710,489. As of December 31, 2022, the City's liability relating to the Clean Water State Revolving Fund (SRF) Loan (AL #66.458) is $4,705,000