Notes to SEFA
Title: Basis of Presentation
Accounting Policies: 1) Basis of Presentation 2) Summary of Significant Accounting Policies 3) Indirect Cost Rate
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of the City of Flowood, Mississippi (the City) under programs of the federal government for the year
ended September 30, 2024. The information in this Schedule is presented in accordance with 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 of the City.
Title: Summary of Significant Accounting Policies
Accounting Policies: 1) Basis of Presentation 2) Summary of Significant Accounting Policies 3) Indirect Cost Rate
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate
Accounting Policies: 1) Basis of Presentation 2) Summary of Significant Accounting Policies 3) Indirect Cost Rate
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The City has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.