Notes to SEFA
The Municipality of Norristown is the reporting entity for financial reporting purposes as defined in Note A to the Municipality of Norristown’s financial statements.
The accompanying schedules of expenditure of federal awards (the “Schedule”) includes the federal award activity of the Municipality of Norristown under programs of the federal government for the year ended December 31, 2024. 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 Municipality of Norristown, it is not intended to and does not present the financial position, changes in net position or cash flows of the Municipality of Norristown.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, 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. The Municipality of Norristown has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
During a review performed in the current fiscal year, it was discovered that expenditures related to the Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing 21.027) totaling $229,000 were not included in the Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended December 31, 2023. These expenditures pertained to Grant number 38875, awarded by the Pennsylvania Commission on Crime and Delinquency. Because these expenditures relate solely to the prior fiscal year and no expenditures for this program were incurred in the current fiscal year, the omitted amounts have not been included in the current-year SEFA. Management evaluated the omission and concluded that: • The error does not affect the current-year SEFA, • The omission does not impact the current-year audit under Uniform Guidance, and • The prior-year SEFA has not been restated or reissued, as the missed expenditures would not have altered the results of the prior fiscal year single audit. This omission did not affect the amounts reported in the Municipality’s basic financial statements.