Title: Basis of Presentation
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (2) Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The City did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Galax, Virginia under programs of the federal government for the year ended June 30, 2024. The information in the 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 of Galax, Virginia, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Galax, Virginia.
Title: Food Distribution
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (2) Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The City did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Loan Balances
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (2) Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The City did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
The City has received federal funding through loans. At June 30, 2024, the outstanding balances of these loans were: $13,650,863
Title: Subrecipients
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (2) Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The City did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
The City did not have any subrecipients for the year ended June 30, 2024.
Title: Relationship to the financial statements
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (2) Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The City did not elect the 10% de minimis indirect cost rate because they only request direct costs for reimbursement.
Federal expenditures, revenues and capital contributions are reported in the City's basic finanical statements as follows: Primary Government: General Fund-Intergoveernmental $10,548,757 Less: Revenue from the Commonwealth (5,391,057) Water and Sewer Fund-Intergovernmental 246,542 Less: Non-federal intergovernmental revenue (44,418) Plus: Debt proceeds 59,821 Component Unit School Board: School Operating Fund-Intergovernmental 22,923,325 Less: Revenue from Local Governments (4,100,291) Less: Revenue from the Commonwealth (13,687,826) Total federal expenditures per the Schedule of Expenditures of Federal Awards $10,554,853