Notes to SEFA
Accounting Policies: 1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of
the City of Macomb, Illinois (City) and is presented on the accrual basis of accounting. 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).
2. Significant Accounting Policies
Revenue from federal awards is recognized when the City has incurred certain qualifying costs to
establish its right to revenue. Accordingly, expenditures are recognized when the fund liability has
been incurred and revenues are recognized when the qualifying expenditure has been incurred.
3. De Minimis Cost Rate
The City did not elect to use the 10% de minimis cost rate as covered in Uniform Guidance § 200.414
Indirect Facilities and Administration Costs.
4. Subrecipients, Insurance, and Loans
The City provided federal awards to subrecipients as indicated on the schedule of expenditures of
federal awards. The City did not have any federal insurance in effect during the year.
Loans Payable - Illinois EPA –
The City had four loans payable to the Illinois Environmental Protection Agency (IEPA) from the City’s
Water Fund as of April 30, 2024. The loans relate to projects as follows:
Loan Number Interest Rate Principal Phase
L17-2947 0.000% $ 226,519 Repayment
L17-5138 2.210% 6 37,230 Repayment
L17-5197 1.860% 2,079,328 Repayment
$ 2,943,077
4. Subrecipients, Insurance, and Loans
The loans were made from the IEPA Revolving Fund which has been funded with both federal and
state of Illinois monies. There were no loan drawdowns during fiscal year 2024. Total loans
outstanding at April 30, 2024 were $2,943,077.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.