Notes to SEFA
Title: Note 1 – Basis of Accounting
Accounting Policies: This Schedule is prepared on the same basis of accounting as the city financial statements. The
city uses the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The City has not claimed any indirect costs.
This Schedule is prepared on the same basis of accounting as the city financial statements. The
city uses the cash basis of accounting.
Title: Note 2 – Federal Indirect Cost Rate
Accounting Policies: This Schedule is prepared on the same basis of accounting as the city financial statements. The
city uses the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The City has not claimed any indirect costs.
The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The City has not claimed any indirect costs.
Title: Note 3 – Federal Highway Administration Grant (FHWA)
Accounting Policies: This Schedule is prepared on the same basis of accounting as the city financial statements. The
city uses the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The City has not claimed any indirect costs.
The city received a letter dated October 18, 2023 from WSDOT indicating they had done an
administrative review of the reimbursement of federal funds. Total federal expenditures prior to
2023 had exceeded reimbursements to the city by $47,891.20, so the City received a check for
that amount. This amount is reported on the 2023 SEFA as expenditures incurred.