Notes to SEFA
Accounting Policies: NOTE 1 - PURPOSE OF THE SCHEDULEThe accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to the City's financial statements and is presented for purposes of additional analysis. Because the schedule presents only a selected portion of the activities of the City, it is not intended to, and does not, present financial position, changes in fund balances, or the current funds, revenue, expenditures, nor other changes of the City.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards. Federal AwardsPursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal awards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals.Type A and Type B ProgramsThe Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditures or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the City, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2022.Reporting EntityThe reporting entity is fully described in Note 1 of the City financial statements. The schedule includes all federal award programs administered by the City for the year ended June 30, 2022.Basis of AccountingThe expenditures in the schedule are recognized as incurred based on the modified accrual basis of accounting and the cost accounting principles contained in the Uniform Guidance, Cost Principles for State and Local Governments. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.Matching CostsThe schedule does not include matching expenditures. 10% De Minimis Indirect Cost RateThe entity did not choose to use the 10% minimis cost rate. Direct and Indirect Flow-Through Federal AssistanceSome of the City's federal awards are received directly from the granting federal agency. However, the majority of federal awards as identified on the schedule are passed through a separate entity prior to receipt by the City.Sub-recipientsThe City does not pass through to any sub-recipients
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.