Notes to SEFA
Title: NOTE 1 – BASIS OF ACCOUNTING
Accounting Policies: This Schedule is prepared on the same basis of accounting as the City’s financial statements. The City uses the modified accrual basis of accounting for governmental fund financial statements and agency funds and the accrual basis of accounting for internal service and proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
This Schedule is prepared on the same basis of accounting as the City’s financial statements. The City uses the modified accrual basis of accounting for governmental fund financial statements and agency funds and the accrual basis of accounting for internal service and proprietary funds.
Title: NOTE 2 - INDIRECT COST RATE
Accounting Policies: This Schedule is prepared on the same basis of accounting as the City’s financial statements. The City uses the modified accrual basis of accounting for governmental fund financial statements and agency funds and the accrual basis of accounting for internal service and proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The City has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 6 - NONCASH AWARDS - EQUIPMENT
Accounting Policies: This Schedule is prepared on the same basis of accounting as the City’s financial statements. The City uses the modified accrual basis of accounting for governmental fund financial statements and agency funds and the accrual basis of accounting for internal service and proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The City received equipment and supplies that were purchased with federal Homeland Security funds by the state of Washington. The amount reported on the Schedule is the value of the property on the date it was received by the City and priced by the state of Washington.
Title: NOTE 7 – PROGRAM COSTS
Accounting Policies: This Schedule is prepared on the same basis of accounting as the City’s financial statements. The City uses the modified accrual basis of accounting for governmental fund financial statements and agency funds and the accrual basis of accounting for internal service and proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the (city/county/district’s) portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.