Notes to SEFA
Title: NOTE 3
Accounting Policies: NOTE 1: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Pierre and is on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the Uniform Guidance. The City of Pierre received federal awards both directly from federal agencies and indirectlythrough pass-through entities. Federal financial assistance provided to a subrecipient, if any, is treated as an expenditure when it is paid to the subrecipient. During the year endedDecember 31, 2021, there were no amounts passed through to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. NOTE 2: The City of Pierre has not elected to use the 10% de minimis cost rate.
NOTE 3: Both governmental fund types and proprietary fund types account for the City of Pierre's federal grant activity. For governmental fund types, 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. For proprietary fund types, expenditures in the Schedule of Expenditures of Federal Awards are recognized on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City of Pierre's summary of significant accounting policies is presented in Note 1 in the City of Pierre's basic financial statements.
Title: NOTE 4
Accounting Policies: NOTE 1: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Pierre and is on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the Uniform Guidance. The City of Pierre received federal awards both directly from federal agencies and indirectlythrough pass-through entities. Federal financial assistance provided to a subrecipient, if any, is treated as an expenditure when it is paid to the subrecipient. During the year endedDecember 31, 2021, there were no amounts passed through to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. NOTE 2: The City of Pierre has not elected to use the 10% de minimis cost rate.
NOTE 4: Tested as major program.
Title: NOTE 5
Accounting Policies: NOTE 1: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Pierre and is on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the Uniform Guidance. The City of Pierre received federal awards both directly from federal agencies and indirectlythrough pass-through entities. Federal financial assistance provided to a subrecipient, if any, is treated as an expenditure when it is paid to the subrecipient. During the year endedDecember 31, 2021, there were no amounts passed through to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. NOTE 2: The City of Pierre has not elected to use the 10% de minimis cost rate.
NOTE 5: The amount reported represents 23.3% of the original acquisition cost of the federal surplus property received by the City of Pierre.