Notes to SEFA
Title: REPORTING ENTITY
Accounting Policies: The schedules of expenditures of federal awards and state financial assistance have been presented on a basis to reflect the flow of available funds in the individual programs as follows:
Expenditures – Expenditures are presented on the modified accrual basis of accounting. Grant expenditures represent the amount of program funds expended during the year.
De Minimis Rate Used: N
Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate.
Chippewa County (the County) is governed by a board of supervisors consisting of 21 elected members.
The financial reporting entity for the County is based upon criteria set forth in generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The financial reporting entity is defined by GASB to consist of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
The basic financial statements of the County consist solely of the primary government. No other organizations were identified for inclusion in the financial reporting entity of the County.
Title: CDBG PROGRAM REVOLVING LOAN FUND
Accounting Policies: The schedules of expenditures of federal awards and state financial assistance have been presented on a basis to reflect the flow of available funds in the individual programs as follows:
Expenditures – Expenditures are presented on the modified accrual basis of accounting. Grant expenditures represent the amount of program funds expended during the year.
De Minimis Rate Used: N
Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate.
The County was awarded Community Development Block Grants (CDBG) in prior years for financing housing rehabilitation loans. Repayments received on the loans are recorded in a separate revolving loan fund by the County and are used to finance similar loans in accordance with the original grant agreements. Transactions of the revolving loan fund for the year ended December 31, 2024 are summarized as follows:
Balance January 1, 2024 $ 304,986
Grant Revenue 1,260,767
Loan Repayments 535,196
Interest Accrued to Fund 22,000
Loans Made from Fund (1,509,478)
Administration Paid from Fund (272,873)
Balance December 31, 2024 $ 340,598
These loans do not have continuing compliance requirements, and therefore, the above transactions are not included in the schedule of expenditures of federal awards.
Title: CLAIMS PAID VIA THIRD PARTY ADMINISTRATOR
Accounting Policies: The schedules of expenditures of federal awards and state financial assistance have been presented on a basis to reflect the flow of available funds in the individual programs as follows:
Expenditures – Expenditures are presented on the modified accrual basis of accounting. Grant expenditures represent the amount of program funds expended during the year.
De Minimis Rate Used: N
Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate.
Amounts shown as paid via Third-Party Administrator (TPA) are payments made for the client by a TPA for County authorized services for the Children’s Long Term Support (CLTS) program. The TPA makes payments directly to service providers, and receives reimbursement for these services directly from the Wisconsin Department of Health Services (DHS). DHS guidance dictates that these transactions are to be included in the Schedules of Expenditures of Federal Awards and State Financial Assistance of the County.