Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures in the schedule of
expenditures of federal awards are recognized on the modified accrual basis
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the
City of Fernley (City) for the year ended June 30, 2024, and is presented on the modified accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance. The City received federal awards directly from federal agencies.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures in the schedule of
expenditures of federal awards are recognized on the modified accrual basis
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis cost rate.
Governmental fund types account for the City’s federal grant activity. Expenditures in the schedule of
expenditures of federal awards are recognized on the modified accrual basis – when they become a demand
on current available financial resources. Such expenditures are recognized following the cost principles
contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited
as to reimbursement. The City’s summary of significant accounting policies is presented in Note 1 in the
City’s basic financial statements. The City has not elected to use the 10% de minimis cost rate.