Notes to SEFA
Title: NOTE 1. BASIS OF PRESENTATION
Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting as used in the governmental financialstatements. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management andBudget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbersare presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 1. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of City of Scobey(City) under programs of the federal government for the fiscal year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in netposition or cash flows of the City.
Title: NOTE 4. FEDERAL LOANS OUTSTANDING
Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting as used in the governmental financialstatements. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management andBudget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbersare presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Citys federal loan balances and transactions relating to federal money were included in the basic financial statements. Loansoutstanding at the beginning of the year and loans made during the year were included in the federal expenditures presented in theSchedule. Federal loans outstanding at June 30, 2022 were:CFDA Number Program NameOutstandingBalance atJune 30,202210.760 Rural Development - Water and wastewater improvement projects $ 4,855,840