Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity
of the City of Midland (the City) 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
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (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 financial position, or cash
flows of the City.
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
Federal revenue per the financial statements $ 4,698,582
Prior year deferred revenue - unavailable (745,969)
Deferred revenue - unavailable 932,285
SRF loan proceeds recognzed as debt in proprietary funds (AL 66.458) 1,053,039
SRF loan proceeds in storm water management fund (AL 66.458) 4,067
City-wide revenue for projects 6,181
Prior year adjustment to federal transit formula grants (AL 20.507) 10,305
Total expenditures of federal awards $ 5,958,490
An adjustment was made to federal transit formula grants (AL 20.507) of $10,305 for amounts incurred during
the prior fiscal year that were not properly reported on the schedule of expenditures of federal awards in the prior
year. These adjustments were included in the current year since they were not considered material and would
not have affected major programs tested in the prior fiscal year.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients as follows: Assistance Listing Number Amount
14.218 $117,491
97.067 81,916
$199,407