Notes to SEFA
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the activity of
all federal award programs of the City of Liberty, South Carolina (the “City”) for the year ended June 30,
2023. Expenditures for federal financial assistance awarded directly from federal agencies, as well as those
passed through other government agencies, are included on the Schedule.
NOTE 2 - BASIS OF ACCOUNTING
The accompanying Schedule is presented using the modified accrual basis of accounting, which is
described in the notes to the City’s financial statements.
NOTE 3 - RELATIONSHIP TO THE FINANCIAL STATEMENTS
Federal award expenditures are reported in the City’s financial statements generally as expenditures in
the City’s General Fund.
NOTE 4 - MATCHING COSTS
Matching costs (i.e., the non-federal share of certain program costs) are not included in the accompanying
Schedule.
NOTE 5 - INDIRECT COST RATE
The City has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform
Guidance.
De Minimis Rate Used: N
Rate Explanation: NOTE 5 - INDIRECT COST RATE
The City has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform
Guidance.