Notes to SEFA
Title: Reporting Entity:
Accounting Policies: This accompanying schedule has been prepared on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
The accompanying schedule of expenditures of federal awards (schedule) presents all activity or expenditure
or all federal award programs of the City of Willcox, Arizona (City) for the year ended June 30, 2024. The
City’s reporting entity is defined in note 1 of the basic financial statements. All expenditure of federal awards
received directly from federal agencies as well as federal awards passed through other government agencies
are included in the schedule.
Title: Basis of Accounting:
Accounting Policies: This accompanying schedule has been prepared on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
This accompanying schedule has been prepared 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).
Title: Relationship to the Basic Financial Statements:
Accounting Policies: This accompanying schedule has been prepared on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
Expenditures of federal awards have been reported in the following funds: (plese see page 101 of financial statement packet for this info.)
Title: Indirect Cost Rate:
Accounting Policies: This accompanying schedule has been prepared on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
Title: Federal Loans and Loan Guarantee Programs Outstanding:
Accounting Policies: This accompanying schedule has been prepared on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate for fiscal year 2024.
The City has outstanding at fiscal year ending June 30, 2024 funding from the U.S. Department of Agriculture
through the USDA Rural Utility Services for CFDA #10.760 Capitalization Loans for construction and capital
improvements of a waste water system in the amount of $3,933,730. There were no additional compliance
requirements for these loans.