Title: Reporting Entity
Accounting Policies: The City has a centralized accounting system for grant programs. The accounting records for grant programs are maintained on the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period in which all eligibility requirements have been satisfied and the resources are available. Eligibility requirements include timing requirements which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements in which the City must provide local resources to be used for specified purpose, and expenditure requirements in which the resources are provided to the City on a reimbursement basis.
Budgetary control is maintained by a formal appropriation and encumbrance system. Encumbrances are made against appropriations prior to issuance of purchase requisitions. Purchase requisitions which exceed appropriation balances are not released until additional appropriations are made available. Expenditures are recorded when the services or materials are received.
Accounting and budgeting for grants is further controlled by Milwaukee Code of Ordinances Section 304 81. This ordinance provides that no grant programs can be put into operation (expenditures incurred) unless the program has been approved by the Common Council of the City of Milwaukee. The ordinance also provides other procedural guidelines for budgeting and accounting of grant programs.
De Minimis Rate Used: N
Rate Explanation: The City of Milwaukee has not elected to apply the applicable de minimis indirect cost rate to awards for the year ended December 31, 2024.
The funds and entities presented in the City of Milwaukee’s Federal and State Single Audit Report are controlled by or are dependent on the City of Milwaukee (the City). The basis for defining the reporting entity of the City of Milwaukee is discussed in the summary of significant accounting policies note in the City’s Annual Comprehensive Financial Report, which can be found on the City’s website at http://city.milwaukee.gov/AnnualComprehensiveFinancialReport. The Assistance Listing Number (ALN) or State Appropriation Number has been provided on the accompanying schedule of expenditures of federal, state, and other awards to the extent it is available.
Financial data for the Milwaukee Public School System, the Milwaukee Metropolitan Sewerage District, Milwaukee County government, Wisconsin Center District and the Milwaukee Area Technical College have not been included in this report. These governmental entities are not considered component units of the City, the primary government, because these entities do not meet the criteria established by Governmental Accounting Standards Board Statement (GASB) No. 14, The Financial Reporting Entity (as amended by GASB No. 39 and GASB No. 61).
Grants made directly to the City’s component units, the Redevelopment Authority of the City of Milwaukee (RACM) and the Neighborhood Improvement Development Corporation (NIDC) are not included in this report. The Redevelopment Authority and the Neighborhood Improvement Development Corporation publish separate financial and single audit reports.
Title: Annual Comprehensive Financial Report
Accounting Policies: The City has a centralized accounting system for grant programs. The accounting records for grant programs are maintained on the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period in which all eligibility requirements have been satisfied and the resources are available. Eligibility requirements include timing requirements which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements in which the City must provide local resources to be used for specified purpose, and expenditure requirements in which the resources are provided to the City on a reimbursement basis.
Budgetary control is maintained by a formal appropriation and encumbrance system. Encumbrances are made against appropriations prior to issuance of purchase requisitions. Purchase requisitions which exceed appropriation balances are not released until additional appropriations are made available. Expenditures are recorded when the services or materials are received.
Accounting and budgeting for grants is further controlled by Milwaukee Code of Ordinances Section 304 81. This ordinance provides that no grant programs can be put into operation (expenditures incurred) unless the program has been approved by the Common Council of the City of Milwaukee. The ordinance also provides other procedural guidelines for budgeting and accounting of grant programs.
De Minimis Rate Used: N
Rate Explanation: The City of Milwaukee has not elected to apply the applicable de minimis indirect cost rate to awards for the year ended December 31, 2024.
In the Annual Comprehensive Financial Report, City grant projects are accounted for in the Special Revenue Funds, Capital Projects Funds, and Enterprise Funds. Details on the individual grant projects are not readily identifiable in the Annual Comprehensive Financial Report. However, allowable grantor expenditures as reported within the schedule of expenditures of federal, state, and other awards have been reconciled with the balances reported within the Comprehensive Annual Financial Report.
Title: Loan Programs
Accounting Policies: The City has a centralized accounting system for grant programs. The accounting records for grant programs are maintained on the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period in which all eligibility requirements have been satisfied and the resources are available. Eligibility requirements include timing requirements which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements in which the City must provide local resources to be used for specified purpose, and expenditure requirements in which the resources are provided to the City on a reimbursement basis.
Budgetary control is maintained by a formal appropriation and encumbrance system. Encumbrances are made against appropriations prior to issuance of purchase requisitions. Purchase requisitions which exceed appropriation balances are not released until additional appropriations are made available. Expenditures are recorded when the services or materials are received.
Accounting and budgeting for grants is further controlled by Milwaukee Code of Ordinances Section 304 81. This ordinance provides that no grant programs can be put into operation (expenditures incurred) unless the program has been approved by the Common Council of the City of Milwaukee. The ordinance also provides other procedural guidelines for budgeting and accounting of grant programs.
De Minimis Rate Used: N
Rate Explanation: The City of Milwaukee has not elected to apply the applicable de minimis indirect cost rate to awards for the year ended December 31, 2024.
The City provides loans to various businesses and individuals using funds from various grant programs. These loans are primarily for the rehabilitation of commercial and residential properties. At December 31, 2024, the outstanding balances of the loans by grant program are as follows:
The loan balances reported include forgivable amounts and the forgiveness occurs when all eligibility requirements have been met.
Title: Related Party Transactions
Accounting Policies: The City has a centralized accounting system for grant programs. The accounting records for grant programs are maintained on the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period in which all eligibility requirements have been satisfied and the resources are available. Eligibility requirements include timing requirements which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements in which the City must provide local resources to be used for specified purpose, and expenditure requirements in which the resources are provided to the City on a reimbursement basis.
Budgetary control is maintained by a formal appropriation and encumbrance system. Encumbrances are made against appropriations prior to issuance of purchase requisitions. Purchase requisitions which exceed appropriation balances are not released until additional appropriations are made available. Expenditures are recorded when the services or materials are received.
Accounting and budgeting for grants is further controlled by Milwaukee Code of Ordinances Section 304 81. This ordinance provides that no grant programs can be put into operation (expenditures incurred) unless the program has been approved by the Common Council of the City of Milwaukee. The ordinance also provides other procedural guidelines for budgeting and accounting of grant programs.
De Minimis Rate Used: N
Rate Explanation: The City of Milwaukee has not elected to apply the applicable de minimis indirect cost rate to awards for the year ended December 31, 2024.
The City expended $24,006 in 2024 of its CDBG funds for the RACM. The expenditures incurred by RACM related to CDBG planning and environmental inspection reviews of rehabilitation projects in the City. The City entered into a cooperation agreement with RACM, which detailed responsibilities and allowable expenditure categories.
Title: State Programs Excluded from Testing
Accounting Policies: The City has a centralized accounting system for grant programs. The accounting records for grant programs are maintained on the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period in which all eligibility requirements have been satisfied and the resources are available. Eligibility requirements include timing requirements which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements in which the City must provide local resources to be used for specified purpose, and expenditure requirements in which the resources are provided to the City on a reimbursement basis.
Budgetary control is maintained by a formal appropriation and encumbrance system. Encumbrances are made against appropriations prior to issuance of purchase requisitions. Purchase requisitions which exceed appropriation balances are not released until additional appropriations are made available. Expenditures are recorded when the services or materials are received.
Accounting and budgeting for grants is further controlled by Milwaukee Code of Ordinances Section 304 81. This ordinance provides that no grant programs can be put into operation (expenditures incurred) unless the program has been approved by the Common Council of the City of Milwaukee. The ordinance also provides other procedural guidelines for budgeting and accounting of grant programs.
De Minimis Rate Used: N
Rate Explanation: The City of Milwaukee has not elected to apply the applicable de minimis indirect cost rate to awards for the year ended December 31, 2024.
Certain programs funded by the State of Wisconsin that are included in the schedule of expenditures of federal, state and other awards are not required to be tested under Wisconsin State Single Audit Guidelines as follows:
Local Roads Improvement Program (State ID #395.206)