Audit 345515

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the City of Tallulah, Louisiana. The City of Tallulah (the "City") reporting entity is defined in Note 1 to the City's financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the schedule. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the City, it is not intended to and does not present the financial position or changes in net position of the City. NOTE 2 - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement. NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal awards revenues are reported in the City's fund financial statements as follows: General Fund: Intergovernmental revenues $ 7 ,088 Section 8: Intergovernmental revenues 264,139 American Rescue: Intergovernmental revenues 1,648,458 LCDBG Capital Projects: Intergovernmental revenues 799,390 Nonmajor Governmental: Intergovernmental revenues 9,848 Total $ 2 ,728,923 NOTE 4 - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with accounting principles generally accepted in the United States of America. NOTE 5 - FEDERAL AWARDS For those funds that have matching revenues and state funding, federal expenditures were determined by deducting matching revenues from total expenditures. Federal awards do not include the City’s operating income from rents or investment (or other non-federal source). In addition, the entire amount of operating subsidy received during the fiscal year is considered to be “expended during the fiscal year. NOTE 6 – DISASTER GRANTS – PUBLIC ASSISTANCE, AL# 97.036 Non-Federal entities must record expenditures on the SEFA when: (1) Federal Emergency Management Agency (FEMA) has approved the nonfederal entity’s project worksheet (PW), and (2) the non-federal entity has incurred the eligible expenditures. In the fiscal year ending June 30, 2024, the City received $2,553 of eligible expenditures that were incurred in a prior year and are included on the schedule. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis cost rate.