Notes to SEFA
The accompanying schedule of expenditures of federal awards include the grant activity of the City and is presented on the modified accrual basis of accounting. The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenue in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received, they are recorded as unearned revenue until earned. The information in these schedules is presented in accordance with the requirements Uniform Guidance. The City did not use the 10% de minimis indirect cost rate as allowed by Uniform Guidance.