Title: Contingency
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Port Orange, Florida, and is presented on the modified accrual basis of accounting. 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) and Section 215.97, Florida Statutes. 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. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. No amounts were passed through to subrecipients during the fiscal year ended September 30, 2024.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as covered in §200.414, Indirect (F&A) costs, of the Uniform Guidance.
Project expenditures are subject to audit and adjustment. If any expenditures were to be disallowed by the grantor agency as a result of such an audit, any claim for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, all Project expenditures included on the accompanying schedule complied the terms of the project agreements and applicable federal and state laws and regulations.
Title: Deferred FEMA Expenditures
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Port Orange, Florida, and is presented on the modified accrual basis of accounting. 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) and Section 215.97, Florida Statutes. 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. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. No amounts were passed through to subrecipients during the fiscal year ended September 30, 2024.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as covered in §200.414, Indirect (F&A) costs, of the Uniform Guidance.
During the previous two fiscal years, the City incurred substantial costs related to Hurricane Ian and Hurricane Nicole. Per the OMB Compliance Supplement, any reimbursements from the Federal
Emergency Management Agency (FEMA) under CFDA 97.036 are not to be recognized as expenditures for purposes of the Schedule of Expenditures of Federal Awards until the respective Project Worksheets (PW) have been approved. At September 30, 2024, $4,767,798 of the federal amounts from the City of Port Orange, Florida’s PWs from Hurricane Ian have been approved by FEMA and are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2024. State match amounts have also been approved and recorded for financial statement purposes. There are approximately $1,288,000 of expenditures for which no related revenues have been recorded for financial statement purposes and have not been included on the Schedule of Expenditures of Federal Awards; these expenditures will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA. At September 30, 2024, $481,013 of the federal amounts of the City of Port Orange, Florida’s PWs from Hurricane Nicole had been approved by FEMA, and thus are recognized on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2024. There are approximately $8,000 of expenditures for which no related revenues have been recorded for financial statement purposes and have not been included on the Schedule of Expenditures of Federal Awards; these expenditures will be recognized on the Schedule of Expenditures of Federal Awards in future years once approved by FEMA.