Notes to SEFA
Title: Basis of Presentation
Accounting Policies: The Schedule includes the Federal program activity of the City and is presented on the accrual basis of accounting and include all applicable Federal awards received and expended during the year. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: City of Cotter, Arkansas does not charge indirect cost rates and charges 100% of their costs directly.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the City of Cotter, Arkansas (the City) under programs of the Federal government for the year ended December 31, 2024. The information in the 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 net position, or cash flows, where applicable of the City.
Title: Federal Loans
Accounting Policies: The Schedule includes the Federal program activity of the City and is presented on the accrual basis of accounting and include all applicable Federal awards received and expended during the year. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: City of Cotter, Arkansas does not charge indirect cost rates and charges 100% of their costs directly.
The City was approved by the United States Department of Agriculture to receive loans totaling $3,747,000 on a reimbursement basis. The balance at the end of the year ended December 31, 2024 was $2,807,094.
Title: Compliance with Program Requirements
Accounting Policies: The Schedule includes the Federal program activity of the City and is presented on the accrual basis of accounting and include all applicable Federal awards received and expended during the year. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: City of Cotter, Arkansas does not charge indirect cost rates and charges 100% of their costs directly.
Expenditures related to Water and Waste Disposal Systems for Rural Communities program are reported in compliance with the specific requirements outlined in the United States Department of Agriculture regulations governing the program.
Title: Assistance Listing Number (ALN)
Accounting Policies: The Schedule includes the Federal program activity of the City and is presented on the accrual basis of accounting and include all applicable Federal awards received and expended during the year. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: City of Cotter, Arkansas does not charge indirect cost rates and charges 100% of their costs directly.
The program title and ALN number was obtained from the Federal or pass-through grantor or the sam.gov website.