Title: Note 1 – Significant Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
Title: Note 2 – Basis of Accounting
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.
The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in
the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund
types, as described in Note 1 to the City’s basic financial statements. The information in the SEFA 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 (Uniform Guidance).
Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented
in the basic financial statements.
Title: Note 3 – Assitance Listing Numbers
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.
The Assistance Listing Numbers included in the accompanying SEFA were determined based on program name,
review of grant contract information, and the Office of Management and Budget’s Catalog of Federal Domestic
Assistance.
Title: Note 4 – Relationship to the Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures/expenses in the
Title: Note 5 – Indirect Cost Rate
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award
programs of the City of Orange Cove, California (the City). Federal awards received directly from federal
agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are
included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414.
General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.