Notes to SEFA
The accompanying schedule of expenditures of federal awards and state transportation assistance (the “Schedule”) includes the Federal award activity and state financial assistance program activity of the City of Middletown, New York under programs of the federal government and the New York State Department of Transportation for the year ended December 31, 2024. Federal awards received directly from the Federal agencies as well as Federal awards passed through other government agencies are included in the Schedule. The federal 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 (“Uniform Guidance”). The state information is presented in accordance with preliminary Title 17, Part 43 of the New York State Codification of Rules and Regulations ("NYCRR"). 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 and changes in net position of the City.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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.
The City of Middletown, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The City made loans during the year ended December 31, 2024, which were funded with federal awards. Loans made during the year are included in the federal expenditures presented in the schedule:
The federal and state expenditures presented in the Schedule of Expenditures of Federal Awards and State Transportation Assistance (the “SEFA”) reconcile to the Federal and state revenue reported in the Statement of Revenues, Expenditures and Changes in Fund Balance as follows: