Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the
Schedule) are reported under the 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.
De Minimis Rate Used: N
Rate Explanation: The City of Valley City has elected not to use the 10-percent de minimis indirect cost rate as
allowed under the Uniform Guidance.
The accompanying Schedule includes the federal award activity of the City of Valley City, North
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 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 of Valley City,
North Dakota.