Notes to SEFA
The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are recognized when the related liability is incurred. In instances where the grant agreement requires the City to match grant awards with City funds, such matching funds are excluded from the accompanying schedule of expenditures of federal awards. Grant programs that did not have 2025 transactions have not been presented herein. The majority of these programs have completed their program activities but may not have been formally closed out. Grant revenues and expenditures incurred prior to 2025 under these grants remain subject to audit by either the grantor agency or its representatives within the limitations of the Uniform Guidance. Federal grant programs that are administered through State agencies (pass-through awards) have been included in the accompanying schedule of expenditures of federal awards. These programs are operated according to federal regulations promulgated by the originating federal agency providing the funding. The City does not utilize the 10% de minimis indirect cost rate. The City did not pass any awards to sub-recipients. The City’s Capitalization Grants for Clean Water State Revolving Fund Loan have the following outstanding loan balances. The draws made during the year are included in the schedule of expenditures of federal awards. The balances of the loans outstanding at June 30, 2025 are: CW 2019-001 $8,132,471 CW 2020-013 $8,237,005 The City’s Capitalization Grants for Drinking Water State Revolving Fund Loan have the following outstanding loan balances. The draws made during the year are included in the schedule of expenditures of federal awards. The balances of the loans outstanding at June 30, 2025 are: DW 2023-003 $381,064