Notes to SEFA
Title: NOTE 1 REPORTING ENTITY
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: No indirect costs allowed
The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by the City
of New London, Minnesota. The City's reporting entity is defined in Note 1 of the financial statements.
Title: NOTE 2 BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: No indirect costs allowed
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal loan and grant activity
of the City of New London 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 the 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 financial position, or cash flows of the City.
Title: NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: No indirect costs allowed
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
Title: NOTE 4 SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: No indirect costs allowed
The City did not pass-through funds to subrecipients.
Title: NOTE 5 DE MINIMIS COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Subpart E - Cost
Principles, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: No indirect costs allowed
The City elected not to charge the de minimis indirect cost rate of 10% to federal programs.