Title: Note 2 - Basis of Presentation
Accounting Policies: Note 1 - Basis of Accounting
The City accounts for awards under federal programs in the Grant and Special Revenue governmental funds.
In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures
and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the audit 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”), wherein certain types of expenditures are not allowable or are limited to reimbursement.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The City has elected not to use a 10 percent
de minimis indirect cost rate allowed under the Uniform Guidance on an overall basis.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph, last sentence.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the
City under programs of the federal government for the year ended September 30, 2024. The information in this schedule is
presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance.
Because the Schedule presents on 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.
The Schedule includes pass-through entity identifying numbers where available.
Title: Note 3 - Availability of Federal Grant Funds
Accounting Policies: Note 1 - Basis of Accounting
The City accounts for awards under federal programs in the Grant and Special Revenue governmental funds.
In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures
and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the audit 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”), wherein certain types of expenditures are not allowable or are limited to reimbursement.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The City has elected not to use a 10 percent
de minimis indirect cost rate allowed under the Uniform Guidance on an overall basis.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph, last sentence.
The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 90 days beyond the federal project period ending date, in
accordance with provisions of the U.S. Office of Management and Budget Compliance Supplement.
Title: Note 4 - Relationship to Federal Financial Reports
Accounting Policies: Note 1 - Basis of Accounting
The City accounts for awards under federal programs in the Grant and Special Revenue governmental funds.
In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures
and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the audit 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”), wherein certain types of expenditures are not allowable or are limited to reimbursement.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The City has elected not to use a 10 percent
de minimis indirect cost rate allowed under the Uniform Guidance on an overall basis.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph, last sentence.
Grant expenditure reports as of September 30, 2024, which have been submitted to grantor agencies will, in some cases,
differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later
date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant as the
discrepancies noted are timing differences.