Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the
Municipality under programs of the federal government for the year ended June 30, 2024. The information in this
schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR 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 the amounts presented in, or used in
the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations
of the Municipality, it is not intended to, and does not present, the financial position and changes in net position of the
Municipality.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
Title: ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBER
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA)
Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms,
including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal
programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov
assistance listing is the publicly available online database showing all available Federally-funded programs.
State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should
be treated by the Municipality as though they were received directly from the federal government. The Uniform
Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by
the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable
and numbers identified as N/AV are not available.
Title: INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
Title: COMMUNITY DISASTER LOAN PROGRAM
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
On June 22, 2021 FEMA issued to the Municipality a five-year promissory note for a maximum amount of $4,948,851
for financial assistance under the Community Disaster Loan Program (“CDL”), bearing interest at .875% annually and
due on June 21, 2026. The program provides assistance to local governments to overcome a loss in revenues as a result
of an earthquake disaster (earthquake of January, 2020), in order to perform its governmental operational functions.
Neither principal nor interest payments are required until maturity. During the year ended June 30, 2024 the Municipality
received $1,000,000 in advances from this loan.
Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the
loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of
the SEFA. Program transactions during 2023-2024 year are as follows:
Description Amount
Outstanding notes balance, at beginning of year: $ 1,750,000
Note advances received during fiscal year: 1,000,000
Total outstanding note balance, June 30, 2024 $ 2,750,000
Current year loan expenditures: $ 788,179
Unspent loan proceeds, as of June 30, 2024 $ 4,832
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are
recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the
following programs are recognized based on other unique requirements:
▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required
by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy
for the PHA’s fiscal period.
▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the
nonfederal entity’s Project, and (2) eligible expenditures are incurred.
▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the
audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the
federal government imposes continuing compliance requirements. For loans with no imposed continuing
compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are
incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance
The following is a reconciliation of the expenditures reported in the SEFA to the expenditures reported in the statement
of revenues, expenditures and changes in fund balances:
Description
General Fund
(ALN 97.030)
Head Start
(ALN 93.356,
93.600 and
10.558)
FEMAHurricanes
Maria &
Fiona (ALN
97.036)
American
Rescue Plan
Act (ALN
21.027)
Other
Governmental
Funds
Total federal awards
expenditures per SEFA: $ 788,179 $ 7,420,643 $ 877,280 $ 4,714,194 $ 2,193,783
Add: additional amount
recordsd as expenditures under
modified accual basis for Section
8 HCV Program: - - - - 33,299
Add: non-federal awards
expenditures: 15,153,468 - - - 2,131,590
Less: eligible expenditures
incurred in the fund reimbursed
during current period and
reported as transfer-out to the
general fund: - - (102,535) - -
Total expenditures, fund
statements: $ 15,941,647 $ 7 ,420,643 $ 7 74,745 $ 4,714,194 $ 4,358,672