Notes to SEFA
Title: NOTE 1
Accounting Policies: MODIFIED ACCRUAL/ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE DE MINIMIS COST RATE.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Watertown, South Dakota under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), 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 Watertown, South Dakota, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City of Watertown, South Dakota.
Title: NOTE 2
Accounting Policies: MODIFIED ACCRUAL/ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE DE MINIMIS COST RATE.
Expenditures reported on the Schedule are reported on the modified accrual/accrual basis of accounting. 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. The City of Watertown, South Dakota has not elected to use the I0% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3
Accounting Policies: MODIFIED ACCRUAL/ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE DE MINIMIS COST RATE.
The amount only includes the federal expenditures of the City of Watertown, the primary government, and does not include the federal expenditures of the Watertown Housing and Redevelopment Commission, a component unit of the City of Watertown.