Notes to SEFA
Title: Basis of presentation
Accounting Policies: Note 1 - basis of presentation, note 2 - revenue and expense recognition, note 3 indirect cost rate
De Minimis Rate Used: N
Rate Explanation: The entity did not elect to use the 10% rate
1. Basis of Presentation – The accompanying schedule of expenditures of federal awards is presented on the modified accrual basis of accounting. The purpose of this schedule is to present a summary of those activities which have been financed by the U.S. Government. For the purpose of this schedule, federal awards include all federal assistance and procurement relationships entered into by City of Wynne, Arkansas Federal Awards. It is not intended to be, and does not present the financial position of City of Wynne, Arkansas or the results of its operations in conformity with generally accepted accounting principles.
Title: revenue and expense recognition
Accounting Policies: Note 1 - basis of presentation, note 2 - revenue and expense recognition, note 3 indirect cost rate
De Minimis Rate Used: N
Rate Explanation: The entity did not elect to use the 10% rate
2. Revenue and Expenditure Recognition – Revenue is recognized when earned by the entity. Expenditures for direct costs are recognized using the modified accrual basis of accounting and cost accounting principles contained in U.S. Office of Management and Budget OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate
Accounting Policies: Note 1 - basis of presentation, note 2 - revenue and expense recognition, note 3 indirect cost rate
De Minimis Rate Used: N
Rate Explanation: The entity did not elect to use the 10% rate
3. The Entity did not elect to use the 10% de minimis indirect cost rate.