Notes to SEFA
Title: Note 1 Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available as
current assets. Expenditure are generally recognized when the liability in incurred. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance wherein certain types of expenditures are not allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes
the federal award activity of the City of Covington, Louisiana (the City), under programs of
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 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, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the City.
Title: Note 2 Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available as
current assets. Expenditure are generally recognized when the liability in incurred. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance wherein certain types of expenditures are not allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available as
current assets. Expenditure are generally recognized when the liability in incurred. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance wherein certain types of expenditures are not allowed or are limited as to
reimbursement.
Title: Note 3 Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available as
current assets. Expenditure are generally recognized when the liability in incurred. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance wherein certain types of expenditures are not allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
The City has elected not to use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.