Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of City of Dearborn Heights, Michigan and is presented on the same basis ofaccounting as the financial statements. The information in this schedule is presented inaccordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). In addition, expenditures reported on the scheduleare recognized following the federal cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowed or are limited as to reimbursement.Therefore, some amounts presented in this schedule may differ from amounts presentedin, or used in the preparation of, the basic financial statements. Because the schedulepresents only a selected portion of the operations of the City, it is not intended to and doesnot present the financial position, change in net position or cash flows of the Organization.Expenditures reported in the Schedule are reported on the same basis of accounting asthe basic financial statements. Such expenditures are recognized following the costprinciples contained in Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.