The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of Houghton, Michigan under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), 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 of Houghton, Michigan it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Houghton, Michigan.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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.
For purposes of charging indirect costs to federal awards, the City has elected to use the 10% de minimis cost rate as permitted by CFR Section 200.414 of the Uniform Guidance, though in all federal grants and loans received in the current fiscal year no indirect costs were charged to the grants.
2020 Series A Water Supply System Junior Lien Revenue Bonds $1,639,000, 2020 Series A Sewer Disposal System Junior Lien Revenue Bonds $468,000, 2020 Series B Sewer Disposal System Junior Lien Revenue Bonds $81,000, 2021 Series A Sewage Disposal System Junior Lien Revenue Bonds $308,000 and 2021 Series A Water Supply System Junior Lien Revenue Bonds $1,121,900.
The following is a reconciliation of the amounts reported on the basic financial statements to the Schedule of Expenditures of Federal Awards: Total Federa Revenue Recognized per Schedule of Expneditures of Federal Awards $2,793,336, Less: USDA Loans Disbursed ($2,000) Total Federal Federal Sources per Financial Statements $2,791,336.