Title: Note 1. General
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024
De Minimis Rate Used: Y
Rate Explanation: The County has elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance (the "Schedule") includes the federal and state activity of Charlotte County, Florida (the "County"). The County reporting entity is defined in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024. All federal financial assistance programs received directly from federal agencies, as well as federal financial assistance programs passed through other government agencies, are included in the schedule. The Schedule is presented in accordance with uniform guidance.
Title: Note 3. Contingencies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024
De Minimis Rate Used: Y
Rate Explanation: The County has elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
Grant monies received by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. As of September 30, 2024, there was no material questioned or disallowed costs as a result of grant audits in process or completed of which management was aware. Any adjustments to grant funding are recorded in the year the adjustment occurs. Subsequent to year end, significant funding cuts have been implemented by the US government. It is unclear at this time what impact, if any, these actions may have on the County.
Title: Note 4. Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024
De Minimis Rate Used: Y
Rate Explanation: The County has elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
After a presidentially declared disaster, Federal Emergency Management Agency ("FEMA") provides Disaster Grants - Public Assistance (Presidentially Declared Disasters) (Assistance Listing #97.036) to reimburse eligible costs associated with repair, replacement or restoration of disaster-damaged facilities. The federal government makes reimbursements in the form of cost-shared grants that require state matching funds.
Charlotte County was impacted by Hurricane Idalia in August 2023, as well as Debby and Helene during the months of August and September 2024, while still dealing with the aftermath of Hurricane Ian. These hurricanes were presidentially declared disasters and resulted in various amounts of damage. Federal awards for hurricane recovery was issued by FEMA, currently obligating $73,654,895 for Hurricane Ian, $97,030 for Hurricane Idalia inn Federal FEMA funds, excluding County share. Charlotte County estimates FEMA eligible expenditures for the fiscal year ending September 30, 2024 to amount to $31,229,221, which already received FEMA's approval for reimbursement.
Title: Note 5. Hurricane Emergency Watershed Protection Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024
De Minimis Rate Used: Y
Rate Explanation: The County has elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
During the year ended September 30, 2024 the County commenced remediation work on water management facilities according to the grant agreement awarded by the US Department of Agriculture, Natural Resources Conservation Service, based on Assistance Listing Number 10.923. The Federal funds assigned to the Project currently amount to $20,801,450, with eligible expenditures during the fiscal year 2024 in the amount of $14,601,137, with the efforts in canal cleanup continuing into year 2025.
Title: Note 6. Assistance Provided through American Rescue Plan Act
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and the Schedule of State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County's Basic Financial Statements for the fiscal year ended September 30, 2024
De Minimis Rate Used: Y
Rate Explanation: The County has elected to use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
American Rescue Plan Act of 2021 (ARPA) was adopted in March 2021. Section 9901 of the Act authorizes Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), funding a variety of local projects in response to the health emergency under Assistance Listing #21.027. During the fiscal year ended September 30, 2024 Charlotte County expended $8,994,384 of CSLFRF funds according to the funding agreement with the Department of the Treasury. ARPA funding was also passed through Assistance Listing Programs Number 93.044 and 93.052, in the cumulative amount of $195,679, managed by the Department of Health and Human Services.