Notes to SEFA
Expenditures reported in the Schedule are presented on the modified accrual basis of accounting for the Governmental Funds and the accrual basis of accounting for the Proprietary Funds. 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.
City of Ironwood, Michigan, had twelve loans outstanding with U.S. Department of Agriculture at June 30, 2025, for a total of $18,482,000.
Of the federal expenditures presented in the schedule, City of Ironwood, Michigan, provided no federal awards to subrecipients.
The major federal assistance program is listed in the Schedule of Findings and Questioned Costs. City of Ironwood, Michigan does not qualify as a low-risk auditee in accordance with the Uniform Guidance. Major programs, which must exceed 40% of the total federal awards expended, were selected using a risk-based approach based on auditors’ risk assessments. All other federal programs are considered non-major programs.
Expenditures in this schedule are in agreement with the amounts reported in the financial statements. Following is a schedule reconciling the expenditures per the schedule of expenditures to the financial statements: Primary Goverment Federal expenditures $13,207,386 Current year construction in progress financed with loan funds and construction accounts payable (126,000) Federal grant revenue per financial statements $13,081,386 Recap of Federal grant revenue per financial statements: General fund $1,011,357 Downtown Ironwood Development Authority $3,000 Library Fund $395,019 Water Utility Fund $ 11,672,010 $13,081,386