Title: NOTE 2 - LOANS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Marysville, Michigan (the “City”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting as the financial statements, the accrual basis, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The City has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Costs are charged directly to the grant.
Funding has been provided for the construction and improvement to the sanitary sewer system by the U. S. Environmental Protection Agency (“EPA”) pass through the State of Michigan Department of Environment, Great Lakes, and Energy (EGLE) through State Clean Water Revolving Fund loan at and for the year ended June 30, 2024 as follows:
Loan amount authorized $4,855,000
Loan balance at June 30, 2024 $4,147,378
2024 activity - proceeds federally funded $710,768
Federal expenditures $710,768
Title: NOTE 3 - RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Marysville, Michigan (the “City”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting as the financial statements, the accrual basis, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The City has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Costs are charged directly to the grant.
The following schedule reconciles federal award activity reported in the financial statements to the expenditures of federal awards reported on the Schedule:
Intergovernmnetal revenue $5,642,282
Less State and local funding (5,262,562)
379,720
Properietary funds -
Loan proceeds for waste disposal system 2,293,577
Less: State funding (1,582,809)
710,768
Total federal awards $1,090,488