Notes to SEFA
Title: 1 - Basis of Presentation
Accounting Policies: Note 2
De Minimis Rate Used: N
Rate Explanation: The City wanted to be more accurate - the timing difference didn't change much between the two methods.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of City of Klawock under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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 cash flows of City of Klawock.
Title: 2 - Summary of Significant Accounting Policies
Accounting Policies: Note 2
De Minimis Rate Used: N
Rate Explanation: The City wanted to be more accurate - the timing difference didn't change much between the two methods.
Expenditures reported on the Schedule are reported on the modified accrual 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, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. City of Klawock has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.