Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the City of Seat Pleasant (the “City”) under programs of the federal government for the fiscal year ended June 30, 2023. The information in the SEFA is presented in accordance with the requirements of 2 CFR 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 fund balance of the City.
Title: NOTE 2 – BASIS OF ACCOUNTING
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 3 – INDIRECT COST RATE
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The City has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4 – FEDERAL LOANS
Accounting Policies: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
The City received a $4,100,000 loan from the U.S. Department of Agriculture to pay off a BB&T loan to finance renovation of City Hall and construction of the Environmental Justice Building. Federally funded new loan proceeds are included as expenditures on the Schedule of Expenditures of Federal Awards in the year incurred. The outstanding loan balance as of June 30, 2023 is $4,032,964. Single Audit testing procedures were performed for program transactions occurring during the fiscal year ended June 30, 2023.