Notes to SEFA
Title: Note 3 – Federal Loans
Accounting Policies: Note 1 - This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis of accounting. Financial statements are prepared using the cash basis of accounting and measurement focus. Revenues are recognized when cash is received, and expenditures are recognized when paid. In accordance with state law, the city also recognizes expenditures paid during twenty days after the close of the fiscal year for claims incurred during the previous period.
De Minimis Rate Used: N
Rate Explanation: Note 2 - The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The city was approved by the USDA Rural Utilities Service to receive a loan totaling $2,333,000 for Phase 1 of the Jewett Mainline Replacement Project. Interim loan financing was approved for the construction period by Cashmere Valley Bank. For the year 2023, the Interim Financing was completed however, the USDA RD funding did not come through until 2024.
Title: Note 4 – Program Costs
Accounting Policies: Note 1 - This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis of accounting. Financial statements are prepared using the cash basis of accounting and measurement focus. Revenues are recognized when cash is received, and expenditures are recognized when paid. In accordance with state law, the city also recognizes expenditures paid during twenty days after the close of the fiscal year for claims incurred during the previous period.
De Minimis Rate Used: N
Rate Explanation: Note 2 - The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the city portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 5 – Coronavirus Local Recovery Fund Expenditures
Accounting Policies: Note 1 - This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis of accounting. Financial statements are prepared using the cash basis of accounting and measurement focus. Revenues are recognized when cash is received, and expenditures are recognized when paid. In accordance with state law, the city also recognizes expenditures paid during twenty days after the close of the fiscal year for claims incurred during the previous period.
De Minimis Rate Used: N
Rate Explanation: Note 2 - The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
As approved by the City Council, the following expenditures were made utilizing the Coronavirus Local Fiscal Recovery Funds: $365,655 Housing Security