Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the City of El Monte, California (the City). For purposes of this schedule, financial awards include federal awards received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portions of program expenditures reimbursable with federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum reimbursement authorized, if any, or the portion of the program expenditures that were funded with other state, local or other non-federal funds are excluded from the accompanying schedule.
The information in the SEFA 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 (Uniform Guidance). Because the SEFA 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 assets, or cash flows of the City.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
Title: NOTE 3 INDIRECT COST RATE
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 LOANS
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City participates in Community Development Block Grants/Entitlement Grants (CDBG), Home Investment Partnerships Program (HOME), and Coronavirus State and Local Fiscal Recovery Funds (SLFRF) that sponsor revolving loan programs, which are administered by the City. The funds are returned to the programs upon repayment of the principal and interest. In accordance with 2 CFR Section 200.502(b), the value of new loans made, the beginning balance of loans from previous years, and any interest subsidy, cash, or administrative cost allowance received are included in the SEFA.
As of June 30, 2024, the following loans receivable were outstanding:
Community Development Block Grants/Entitlement Grants - Loan Program $7,245,801
Home Investment Partnerships Program - Loans Program 14,633,416
Coronavirus State and Local Fiscal Recovery Funds - Loans Program 940,234
Total $22,819,451
During the fiscal year ended June 30, 2024, the following new loans were made:
Community Development Block Grants/Entitlement Grants - Loan Program $6,608
Home Investment Partnerships Program - Loans Program 2,239,223
Coronavirus State and Local Fiscal Recovery Funds - Loans Program 206,557
Total $2,452,388
Total repayments of loans received during the year amounted to $26,922 for the CDBG program and none for the HOME and SLFRF programs.
Title: NOTE 5 RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Grant expenditure reports for the year ended June 30, 2024, which have been submitted to grantor agencies, will, in some cases, differ from the amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals.
Title: NOTE 6 RELATIONSHIP TO ANNUAL COMPREHENSIVE FINANCIAL REPORT
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for governmental funds, which is described in Note 1 of the City’s basic financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying SEFA agree, in all material respects, with amounts reported within the City’s Annual Comprehensive Financial Report.