Title: NOTE F RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPEND
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity ofthe Municipality under programs of the federal government for the year ended June 30, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR Part 200),Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used inthe preparation of, the basic financial statements. Because the schedule presents only a selected portion of theoperations of the Municipality, it is not intended to, and does not present, the financial position and changes in netposition of the Municipality.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures arerecognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for thefollowing programs are recognized based on other unique requirements:? Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as requiredby the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACCsubsidy for the PHAs fiscal period.? Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during theaudit period plus the beginning of the audit period balance of outstanding loans from previous years for whichthe federal government imposes continuing compliance requirements. For loans with no imposed continuingcompliance requirements, expenditures are recognized when the related costs financed with loan proceeds areincurred.? Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved thePW, and (2) eligible expenditures are incurred.NOTE C ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYINGNUMBERThe Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA)Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms,including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federalprograms that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.govassistance listing is the publicly available online database showing all available Federally-funded programs.State or local government redistributions of federal awards to the Municipality, known as pass-through awards,should be treated by the Municipality as though they were received directly from the federal government. The UniformGuidance requires the schedule to include the name of the passthrough entity and the identifying number assignedby the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are notapplicable and numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
DescriptionGeneral Fund(ALN 97.030)USHUDCommunityDevelopmentBlock Grant Fund(ALN 14.228)FEMA Fund(ALN 97.036)CoronavirusRelief Fund(ALN21.019)AmericanRescue Plan ActFund (ALN21.027)OtherGovernmentalFundsTotal federal awards expenditures per SEFA: $ 3,424 $ 253,136 $ 162,491 $ 1,560,156 $ 1,785,342 $ 1,121,199Add: non-federal awards expenditures: 10,323,043 - - - - 375,315Less: additional amount recorded as expendituresunder accual basis for Section 8 HCV Program: - - - - - (11,595)Less: eligible expenditures incurred in the generalfund reimbursed during current period and reportedas transfer-out to the general fund: - - - - (71,860) - Total expenditures, fund statements: $ 10,326,467 $ 253,136 $ 162,491 $ 1,560,156 $ 1,713,482 $ 1,484,919
Title: COMMUNITY DISASTER LOAN PROGRAM (ALN 97.030)
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity ofthe Municipality under programs of the federal government for the year ended June 30, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR Part 200),Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used inthe preparation of, the basic financial statements. Because the schedule presents only a selected portion of theoperations of the Municipality, it is not intended to, and does not present, the financial position and changes in netposition of the Municipality.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures arerecognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for thefollowing programs are recognized based on other unique requirements:? Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as requiredby the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACCsubsidy for the PHAs fiscal period.? Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during theaudit period plus the beginning of the audit period balance of outstanding loans from previous years for whichthe federal government imposes continuing compliance requirements. For loans with no imposed continuingcompliance requirements, expenditures are recognized when the related costs financed with loan proceeds areincurred.? Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved thePW, and (2) eligible expenditures are incurred.NOTE C ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYINGNUMBERThe Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA)Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms,including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federalprograms that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.govassistance listing is the publicly available online database showing all available Federally-funded programs.State or local government redistributions of federal awards to the Municipality, known as pass-through awards,should be treated by the Municipality as though they were received directly from the federal government. The UniformGuidance requires the schedule to include the name of the passthrough entity and the identifying number assignedby the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are notapplicable and numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In June, 2018, FEMA issued to the Municipality a five-year promissory note for a maximum amount of $2,970,817for financial assistance under the CDL Program, bearing interest at 2.75% and due in June 2023. The program provideassistance to local governments to overcome a loss in revenues as a result of a natural disaster, in order to perform itsgovernmental operational functions. Neither principal nor interest payments are required until maturity.Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of theloan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the faceof the SEFA. Program transactions during 2021-2022 year are as follows:Description AmountOutstanding note balance, at beginning of year: $ 2,970,817Note advances received during fiscal year 2021-2022: (2,970,817)Total outstanding note balance, June 30, 2022 $ -Current year loan expenditures: $ 3,424Unspent loan proceeds, as of June 30, 2022: $ 329,260In accordance with the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43)approved by the United States Congress, repayment of f the outstanding balance of the referenced CDL as of September30, 2021, in the amount of $2,970,817 was cancelled.