Notes to SEFA
Title: Loans and Loan Guarantees
Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the City of Longmont under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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, it is not intended to and does not present the financial position, change in net position, or cash flows of the City. The City's summary of significant accounting policies is presented in Note 2 to the City's basic financial statements for the year ended December 31, 2022. Governmental funds and proprietary funds account for the City's federal grant activity. Expenditures reported on the Schedule are recognized on either the accrual basis of accounting or the modified accrual basis of accounting, depending on the basis of accounting used by the respective fund for which the activity is reported. Such expenditures are recognized following Uniform Guidance, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements or reports to federal agencies. The pass-through entity identifying numbers are presented where available. The City does not elect an indirect cost rate for the periods ended December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
CDBG loans receivable balances outstanding at December 31, 2022, consist of deferred, forgivable and repayment loans the majority of which are related to the Citys rehabilitation program. HOME loans receivable balances outstanding at December 31, 2022, consist of both deferred and repayment loans in conjunction with the Citys down payment program and funding to affordable housing projects. See Notes to the SEFA for table.