Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost.
De Minimis Rate Used: N
Rate Explanation: The City did not incur any indirect costs associated with federal awards.
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City. The City’s reporting entity is defined in Note 1 to the financial statements 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 assets, or cash flows of the City. The American Rescue Plan Act Funding Program from the U.S. Department Treasury, passed through the Louisiana Division of Administration and the Capitalization Grants for Drinking Water State Revolving Fund from the U.S. Environmental Protection Agency, passed through the Louisiana Department of Health were considered to be major federal programs of the City.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost.
De Minimis Rate Used: N
Rate Explanation: The City did not incur any indirect costs associated with federal awards.
Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost.
De Minimis Rate Used: N
Rate Explanation: The City did not incur any indirect costs associated with federal awards.
The City provided no federal awards to subrecipients.
Title: Donated PPE Purchased with Federal Assistance Funds for the COVID-19 Response
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost.
De Minimis Rate Used: N
Rate Explanation: The City did not incur any indirect costs associated with federal awards.
The City did not receive donated PPE purchased with federal assistance funds for COVID-19 response.
Title: Loan Balance
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the 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 to reimbursement. Pass-through identifying numbers are presented where available. The City did not incur any indirect costs associated with federal awards. The City has not elected to use the ten (10) percent de minimis indirect cost.
De Minimis Rate Used: N
Rate Explanation: The City did not incur any indirect costs associated with federal awards.
Loans made during the year are reported as federal expenditures and included on the schedule under the Assistance Listing Number 66.468, Capitalization Grants for Drinking Water State Revolving Fund. The balance of loans outstanding at December 31, 2024 consists of $312,429.
The expenditures on the Schedule of Expenditures of Federal Awards is $536,462 more than the loan balance due to a draw not yet requested for all of current year expenditures in the amount of $302,140 and loan forgiveness in the amount of $234,322. More information on the loan forgiveness is in Note 8 – Long-Term Liabilities.