Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles in the Uniform Guidance wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% De Minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Billings,
Montana for the year ended June 30, 2024. The City’s reporting entity is described in Note 1 in the City’s basic financial
statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance
passed through other governmental agencies, is included in the schedule. The information in this schedule is presented in
accordance with 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). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements.
Title: ARPA Reconciliation
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles in the Uniform Guidance wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% De Minimis indirect cost rate allowed under the Uniform Guidance.
ARPA fund eligibility requirements are considered to be met at the time of project completion. The State of Montana withholds
payments to the City until projects are complete, therefore, the City considers that the eligibility of the expenditures as being
met at that point in time. Once these projects are complete and the grant funds are remitted to the City from the State is the
point in which the expenditures are recognized in the Schedule of Expenditures and Federal Awards. The below reconciliation
depicts the reconciliation of each of the relevant grant awards that are affected:
Title: FEMA
Accounting Policies: Amounts reported in the schedule of expenditures of federal awards are recognized on the modified accrual basis when they
become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis, at the
time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective
fund. Such expenditures are recognized following the cost principles in the Uniform Guidance wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% De Minimis indirect cost rate allowed under the Uniform Guidance.
FEMA Disaster Declaration #4655 - FEMA Disaster Declaration Grant #4655 is an ongoing grant as a result of the flood event on June 14, 2022. Fiscal
Year 2023 expenditures included Emergency Protective Measures, Debris Removal, and other immediate needs. During Fiscal Year 2024, the City and
FEMA have collaborated to obligate funding for a final Engineering and Design (A&E) project for repairs and hazard mitigation from damages on the
second water intake. A portion of the project was obligated in Fiscal Year 2024, but is still under review. However, the Engineering and Design Project
(A&E) should be fully obligated in Fiscal Year 2025. FEMA will not approve expenditures on the project until it has been fully reviewed, therefore, the
City considers that the eligibility of the expenditures as being met at that point in time. Once these projects are obligated for reimbursement, the
expenditures will be recognized in the Schedule of Expenditures and Federal Awards. Therefore in Fiscal Year 2024 Schedule of Expenditures and
Federal Awards the grant award has increased to the current approved obligated amount, but no expenditures are listed for Fiscal Year 2024.