Notes to SEFA
Accounting Policies: Note 1 Significant Accounting PoliciesThe accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal awardprograms of the City of Gonzales, California (the City). Federal awards received directly from federal agencies aswell as federal awards passed through other nonfederal agencies, primarily the State of California, are included inthe SEFA. The Citys reporting entity is defined in Note 1 to the Citys basic financial statements.Note 2 Basis of AccountingThe accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in thegovernmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types,as described in Note 1 to the Citys basic financial statements. The information in the SEFA is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presentedin the basic financial statementsNote 3 Catalog of Federal Domestic Assistance (CFDA) NumbersThe CFDA numbers included in the accompanying SEFA were determined based on program name, review of grantcontract information, and the Office of Management and Budgets Catalog of Federal Domestic Assistance.Note 4 Relationship to the Financial StatementsExpenditures of federal awards are reported in the Citys basic financial statements as expenditures/expenses in theGeneral Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.Note 5 Indirect Cost RateThe City did not elect to use the 10% de minimus cost rate as covered in 2 CFR ?200.414.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.