Notes to SEFA
All federal financial award programs of the City of Paris, Arkansas (the City) are included in the scope of the Uniform Guidance audit. For purposes of this schedule, federal awards include those received from other agencies, the original source of which was a federal agency.
The City’s grant funds are accounted for on the regulatory basis of accounting as prescribed or permitted by Ark. Code Annotated 10-4-412. This regulatory basis differs from accounting principles generally accepted in the United States of America. Revenues generally are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred. Liabilities incurred by the government on or before the end of the current period that are paid within 60 days of the end of the period, are considered to be expenditures of the current period. These grant funds are included in the “Federal funds” line of the Statement of Revenues, Expenditures, and Changes in Fund Balances – Regulatory Basis. See loan program below for additional federal funds. The City is the recipient of federal grant awards. The grant programs are administered by various departments within the City. The activities of these departments are monitored by City staff to ensure compliance with the requirements of grants.
Grant expenditures reports as of December 31, 2024, which have been submitted to grantor agencies will, in some cases, differ slightly from 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. The reports will agree at termination of the grant as the discrepancies noted are timing differences.
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
During the year ended December 31, 2021, the water department issued a revenue bond in the amount of $4,422,000 which was purchased through a loan program by the United States Department of Agriculture. During the year ended December 31, 2024, total advances on the revenue bond under the loan program were $331,138. This loan was for the development and improvement of the City’s water system. At December 31, 2024, the balance on this loan was $ 3,348,120.