Notes to SEFA
This schedule is prepared on the same basis of accounting as the City of Shoreline’s financial statements. The City of Shoreline uses the Generally Accepted Accounting Principles (GAAP) basis of accounting
The City has elected the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and the 15 percent de minimis indirect cost rate effective October 1, 2024 for grants awarded on that date or later due to the new Uniform Guidance issued on April 22, 2024. Note however that neither indirect cost rate was applied to any of the City’s federal grants during the year
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the City of Shoreline’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in 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
On August 16, 2021, the City entered into a ninety-nine year lease with Catholic Housing Services (CHS) providing land for the Shoreline 198th Street Permanent Supportive Housing Project (the Project) with 100 total units to serve the formerly homeless. King County – the third Project partner - provided $4.5 million in capital funding to demonstrate modular construction techniques in affordable housing. This America Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) grant was applied for in partnership with CHS to provide funding for sewer and stormwater improvements. In November 2023, the Washington Department of Commerce (DOC) awarded the resulting grant, and the City and CHS executed the “Assignment and Assumption of Connecting Housing to Infrastructure Program Grant Award Agreement Contract No. 22-96720-206” contract, “pursuant to the terms of Section 8 of the General Terms and Conditions of the Grant Agreement” the DOC having pre-approved assignment of the grant agreement to the City’s affordable housing partner-CHS. As the City provided the sewer and stormwater improvements, the City had a receivable for development fees incurred by CHS. The City was made whole by the receipt of the SLFRF. That is the amount reported on the Schedule of Expenditures of Federal Awards (SEFA). With the assumption of the grant award, it was incumbent upon CHS to submit the grant billing which it did. The City received payment from the Department of Commerce in 2024.