Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of St. Clair Shores under programs of the federal government for the year ended June 30, 2025. The 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). Because the Schedule presents only a selected portion of the operations of the City of St. Clair Shores, it is not intended to and does not present the fund balance or financial position, changes in fund balance or net position, or cash flows of the City of St. Clair Shores.
Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of St. Clair Shores has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
See the Notes to the SEFA for chart/table. * Under the equitable sharing program, policing agencies seize assets which are pooled and then allocated to participating agencies. Participating agencies are allowed to carryover balances of the funds allocated to them from year to year as expenditures will not always equal the amounts received for any given year.
Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients under assistance listing number 14.218 in the amount of $35,252.
During the fiscal year 2022, the City received funds under the American Rescue Plan Act (ARPA) to support eligible projects and programs. During the current fiscal year, the City Council approved a reallocation of a portion of these ARPA funds from previously designated uses to a new project focused on public safety infrastructure. This reallocation represents a significant, nonrecurring transaction that is unique in nature and infrequent in occurrence and therefore is reported as a special item in accordance with GASB Statement No. 34 with the City’s June 30, 2025 annual comprehensive financial report. The amount reallocated during the current year in the Water Fund was $2,027,669. Following is a reconciliation of the federal expenditure activity related to the ARPA grant recorded under assistance listing 21.027. See the Notes to the SEFA for chart/table.