Audit 356426

Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards is prepared using the modified accrual basis of accounting and is presented in accordance with the requirements of the Uniform Guidance. Measurement Focus The determination of when an award is expended is based on when the activity related to the award occurred. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding the larger of $750,000, or 3% of total federal expenditures. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The City of Savannah, Georgia (the “City”) qualified as a low-risk auditee for the fiscal year ended December 31, 2024. Program Income Expenditures of program income are recognized on the Schedule of Expenditures of Federal Awards when the qualifying expenditure has been incurred. Indirect Cost Rate During 2024, the City did not use the de-minimis indirect cost rate. Indirect costs are charged based on an indirect cost plan. NOTE 2. REVOLVING LOAN FUND As of December 31, 2024, the amount reported for the Economic Development Administration (“EDA”) revolving loan fund is calculated as follows: Cash on hand $1,455,731 Notes receivable $382,514 $1,838,245 EDA portion of the total 75% Total federal expenditures for the EDA program $1,378,684 De Minimis Rate Used: N Rate Explanation: During FY24, the City did not use the de-minimis indirect cost rate.