Title: Note 3 Programs From Multiple Funding Sources
Accounting Policies: Note A--Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity for Louisville/Jefferson County Metro Governments (Metro Government) underprograms 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 FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of Metro Government, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of Metro Government.Federal program funds can be received directly from the federal government or passed through fromanother entity. Uniform Guidance Part 200, Subpart A defines a recipient as a non-federal entity thatexpends federal awards received directly from a federal awarding agency to carry out a federalprogram and a pass-through entity as a non-federal entity that provides a federal award to a subrecipientto carry out a federal program. Note B--Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the requirements of Title2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principlesand Audit Requirements for Federal Awards (Uniform Guidance).The basic financial statements of Metro Government are presented on the modified accrual basis ofaccounting for the governmental fund financial statements and the accrual basis of accounting forthe government-wide, proprietary fund, and fiduciary fund financial statements. Thus, amountsreported on the Schedule may not directly agree to the amounts reported in the basic financialstatements.The accompanying Schedule reflects certain adjustments resulting from transfers of funds betweengrants, adjustments, or credits made in the normal course of business. As a result, certain grantsreflect negative expenditures.Federal assistance listing numbers or other identifying numbers listed on the Schedule wereobtained from the respective grant/contract agreement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Note D--Programs From Multiple Funding Sources Uniform Guidance Part 200, Subpart A defines a recipient as "a non-federal entity that expends federal awards received directly from a federal awarding agency to carry out a federal program" and a passthrough entity as "a non-federal entity that provides a federal award to a sub-recipient to carryout a federal program."Federal program funds can be received directly from the federal government or passed through from another entity. Below is a list of federal programs that are funded from more than a single funding source. They may be either (1) multiple passed through agencies, or (2) both direct and passed through. All other federal programs listed on the SEFA are from a single source, and therefore the program totals are evident in the SEFA. PassCFDA Through No. Program Received From (Grantor No.) 15.904 Historic Preservation Fund Grants-in-Aids Direct Program $ 148,019. Passed Through Kentucky Heritage council KY-19-10020 $ 1,465 and KY-20-10017 $6,609
Title: Note 4--Economic Adjustment Assistance Program
Accounting Policies: Note A--Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity for Louisville/Jefferson County Metro Governments (Metro Government) underprograms 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 FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of Metro Government, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of Metro Government.Federal program funds can be received directly from the federal government or passed through fromanother entity. Uniform Guidance Part 200, Subpart A defines a recipient as a non-federal entity thatexpends federal awards received directly from a federal awarding agency to carry out a federalprogram and a pass-through entity as a non-federal entity that provides a federal award to a subrecipientto carry out a federal program. Note B--Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the requirements of Title2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principlesand Audit Requirements for Federal Awards (Uniform Guidance).The basic financial statements of Metro Government are presented on the modified accrual basis ofaccounting for the governmental fund financial statements and the accrual basis of accounting forthe government-wide, proprietary fund, and fiduciary fund financial statements. Thus, amountsreported on the Schedule may not directly agree to the amounts reported in the basic financialstatements.The accompanying Schedule reflects certain adjustments resulting from transfers of funds betweengrants, adjustments, or credits made in the normal course of business. As a result, certain grantsreflect negative expenditures.Federal assistance listing numbers or other identifying numbers listed on the Schedule wereobtained from the respective grant/contract agreement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Metro Government has an EDA revolving loan fund (RLF) under the Economic AdjustmentAssistance Program, CFDA 11.307. According to the OMB Compliance Supplement, for purposes ofcompleting the SEFA, each EDA RLF (CFDA 11.307) should be shown as a separate line itemcalculated as follows:1. Balance of RLF loan outstanding at the end of the recipients fiscal year, plus2. Cash and Investment balances in the RLF at the end of the recipients fiscal year, plus3. Administrative expenses paid out of the RLF income during recipients fiscal year, plus4. The unpaid principal of all loans written off during the recipients fiscal year; and then multiply this sum (1+2+3+4) by5. The Federal share of the RLF. The Federal share is defined as the Federal participation rate(or the Federal grant rate) as specified in the grant award The calculation to arrive at the RLF amount shown on the SEFA as of June 30, 2022 is as follows:RLF Loans Outstanding $ 4,587,245 Cash/Investment Balance $ 1,256,702Total $ 5,843,947Federal Share 78%RLF Federal Expenditure $ 4,558,279