Title: Note 1 - General
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal and State Awards represents the activity of all federal and
State awards to the City of Wilmington, North Carolina, excluding those of its discretely presented component
unit. The City's reporting entity is defined in Note 1 to the City's basic financial statements. Expenditures are
reported on the schedule only at such time as there is an approved award and as activity occurs that obligates the
City to make a payment, not when the award has been received. As a result, certain expenditures incurred in a
prior year may be reported for the first time in the current year or as a reimbursement of expenditures reported in a
prior year. All federal and state awards, received directly or indirectly (passthrough) from federal and state
agencies, are included on the schedule.
Title: Note 2 - Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
Title: Note 3 - Subrecipents
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Federal and State awards have been passed through to subrecipients as follows for the year ended June 30, 2024:
Title: Note 4 - Indirect Cost
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: Note 5 - Opioid Settlement Fund
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The NC Department of Justice does not consider Opioid Settlement Funds either Federal or State Financial
assistance since they are from a settlement with private major drug companies. Since these funds are subject to
the State Single Audit Implementation Act, they are reported as "Other Financial Assistance" on the SEFSA and
considered State Awards for State single audit requirements.
Title: NOTE 6 – FEDERAL STBG-DA GRANT FROM FEDERAL HIGHWAY ADMINISTRATION
Accounting Policies: The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual
basis, which is described in Note 1 of the City’s basic financial statements. The information in this 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)
and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently
differ from amounts presented in or used in the preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
On July1, 2023, the Federal STBG-DA grant funds for the Multi Modal Phase 1B project were changed from
Federal Highway Administration (FHWA) funds to North Carolina Department of Transportation (NCDOT)
State Contingency funds, resulting in negative Federal Awards and local expenditures in the amounts of
($2,058,626) and ($508,710), respectively, on the Schedule of Expenditures of Federal and State Awards as of
June 30, 2024, associated with that project.