Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: GAAP
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) include the federal grant
activity of the City of Challis, Idaho under programs of the Federal Government for the year ended
September 30, 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 of Challis, Idaho, it is not intended to and
does not present the financial position or changes in Net Position of the City of Challis, Idaho.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: GAAP
De Minimis Rate Used: Y
Rate Explanation: THE AUDITEE USED THE DE MINIMIS COST RATE
Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, where
certain types of expenditures are not allowed or are limited as to reimburse t. Negative amounts shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years.
Title: INDIRECT COST RATE
Accounting Policies: GAAP
De Minimis Rate Used: Y
Rate Explanation: THE AUDITEE USED THE DE MINIMIS COST RATE
ihe City of Challis, Idaho has not elected to use the 10 percent de minis indirect cost rate.
Reporting guidance is presented using the modified accrual basis of accounting as described in Note 1 to
\pe financial statements