Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported under the
regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule includes the federal award activity of City of Bagley, Minnesota 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 the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of City of
Bagley, Minnesota, it is not intended to and does not present the financial position, changes in net position or cash flows of
City of Bagley, Minnesota.
Title: SUBRECIPIENTS
Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported under the
regulatory basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
During 2024, the City did not pass any federal money to subrecipients.