Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of the City of Waterloo (the City) under programs of the federal government for the year ended
December 31, 2024. 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). 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: Expenditures reported on the Schedule are reported on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate.
Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of
accounting. 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.
The underlying accounting records for some grant programs are maintained on the modified accrual basis
of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e.,
both measurable and available. Available means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is
incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when
the revenue has been earned and the liability is incurred.
Title: Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate.
The City has not elected to use the 10% de minimis indirect cost rate.