Notes to SEFA
Title: Note 3 Accrued and Unearned Reimbursement
Accounting Policies: The Single Audit is the performance of a uniform audit of all the Citys federal grants in conjunction with the annual audit of the basic financial statements. The adoption of such a procedure was formalized by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). The Single Audit fulfills all the Federal agencies audit requirements, which include financial, compliance and the adequacy of internal control. The programs tested as major programs are indicated by an asterisk, placed at the total expenditures of the applicable program, on the Schedule of Expenditures of Federal Awards and on the Schedule of Findings and Questioned Costs.The accompanying Schedule of Expenditure of Federal Awards has been prepared on the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when expenditures are made in accordance with the requirements of the respective grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Various reimbursement procedures are used for federal awards received by the City. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Unearned balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or unearned balances caused by differences in the timing of cash receipts and expenditures will be reversed in the remaining grant period or subsequent fiscal year.