Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA are reported on the modified 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. Federal financial assistance provided to a
subrecipient is treated as an expenditure when it is paid to the subrecipient. Negative amounts shown on the
SEFA represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate for federal programs that allow those
costs to be charged, as allowed under the Uniform Guidance, where applicable.
The accompanying schedule of expenditures of federal awards (the “SEFA”) includes the federal award activity
of the City of Henderson (the “City”) under programs of the federal government for the year ended June 30,
2024. The information in this SEFA 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 SEFA 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 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the SEFA are reported on the modified 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. Federal financial assistance provided to a
subrecipient is treated as an expenditure when it is paid to the subrecipient. Negative amounts shown on the
SEFA represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate for federal programs that allow those
costs to be charged, as allowed under the Uniform Guidance, where applicable.
Expenditures reported on the SEFA are reported on the modified 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. Federal financial assistance provided to a
subrecipient is treated as an expenditure when it is paid to the subrecipient. Negative amounts shown on the
SEFA represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the SEFA are reported on the modified 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. Federal financial assistance provided to a
subrecipient is treated as an expenditure when it is paid to the subrecipient. Negative amounts shown on the
SEFA represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate for federal programs that allow those
costs to be charged, as allowed under the Uniform Guidance, where applicable.
The City has elected to use the 10-percent de minimis indirect cost rate for federal programs that allow those
costs to be charged, as allowed under the Uniform Guidance, where applicable.
Title: Note 4 - Loan Programs
Accounting Policies: Expenditures reported on the SEFA are reported on the modified 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. Federal financial assistance provided to a
subrecipient is treated as an expenditure when it is paid to the subrecipient. Negative amounts shown on the
SEFA represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate for federal programs that allow those
costs to be charged, as allowed under the Uniform Guidance, where applicable.
The City participates in Revolving Loan Funds and Section 108 Loan Guarantee programs sponsored by the
Department of Housing and Urban Development - Community Development Block Grants (CDBG) and the HOME
Investment Partnerships Program. Under these programs, the City issues loans to program participants which
may be forgiven over time, or are repaid into the program for the issuance of new loans. Only current year loan
drawdowns (new loans issued) are reported on the SEFA; there are no contingencies noted. At June 30, 2024,
the City had the following loan activities: