Audit 348473

Title: Deferred FEMA Expenditures Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards include federal award activity of City of Edgewater, Florida. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. No amounts were passed through to subrecipients during the fiscal year ended September 30, 2024. De Minimis Rate Used: N Rate Explanation: City of Edgewater, Florida did not elect to use the 10% de minimis indirect cost rate as covered in §200.414, Indirect (F&A) costs, of the Uniform Guidance. During the previous two fiscal years, the City incurred substantial costs related to Hurricane Ian and Hurricane Idalia. Per the OMB Compliance Supplement, any reimbursements from the Federal Emergency Management Agency (FEMA) under CFDA 97.036 are not to be recognized as expenditures for purposes of the Schedule of Expenditures of Federal Awards until the respective Project Worksheets (PW) have been approved. At September 30, 2024, approximately $2.2M of the federal amounts from the City of Edgewater, Florida’s PWs from Hurricane Ian have been approved by FEMA and are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2024. State match amounts have also been approved and recorded for financial statement purposes. There are approximately $1,016,033 of expenditures for which no related revenues have been recorded for financial statement purposes and have not been included on the Schedule of Expenditures of Federal Awards; these expenditures will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA. At September 30, 2024, $40,298 of the federal amounts of the City of Edgewater, Florida’s PWs from Hurricane Idalia had been approved by FEMA, and thus are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2024. No additional PW amounts are outstanding related to this hurricane.