Audit 360955

Title: Drinking Water SRF Loan Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance includes the federal and state award activity of the City of Perry, Florida, and is presented on the 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the State of Florida, Office of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Chapter 10.550, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate. Total expenditures as reported above represent a principal forgiveness grant that was applied to the City’s DW620261 installment note to the Florida Department of Environmental Protection (FDEP) and includes current year City expenditures/expenses. As part of the Drinking Water State Revolving Fund (SRF) Construction Loan Agreement DW620261, the City was awarded $3,702,000 in SRF loan funding for a major sewer rehabilitation project for which loan proceeds were used to fund project costs during the 2023 and 2024 fiscal years. The grant agreement provides for up to $2,752,578 of principal forgiveness.