Notes to SEFA
The accompanying Schedule of Expenditures of Federal and State Awards represents the activity of all federal and State awards to the City of Wilmington, North Carolina, excluding those of its discretely presented component unit. The City's reporting entity is defined in Note 1 to the City's basic financial statements. Expenditures are reported on the schedule only at such time as there is an approved award and as activity occurs that obligates the City to make a payment, not when the award has been received. As a result, certain expenditures incurred in a prior year may be reported for the first time in the current year or as a reimbursement of expenditures reported in a prior year. All federal and state awards, received directly or indirectly (passthrough) from federal and state agencies, are included on the schedule.
The accompanying schedule of expenditures of federal and state awards has been prepared on the modified accrual basis, which is described in Note 1 of the City’s basic financial statements. 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) and the State Single Audit Implementation Act. Therefore, amounts presented in this schedule will frequently differ from amounts presented in or used in the preparation of the financial statements.
Federal and State awards have been passed through to subrecipients as follows for the year ended June 30, 2025:
The City of Wilmington has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The NC Department of Justice does not consider Opioid Settlement Funds either Federal or State Financial assistance since they are from a settlement with private major drug companies. Since these funds are subject to the State Single Audit Implementation Act, they are reported as "Other Financial Assistance" on the SEFSA and considered State Awards for State single audit requirements.
On December 12, 2024, the North Carolina Department of Transportation (NCDOT) reclassified the federal funding source for the South 17th Street MUP project from Federal Highway Administration (FHWA) funds to Surface Transportation Block Grant – Direct Attributable (STBG-DA) funds. This change resulted in a reallocation of previously reported expenditures and led to negative amounts reported on the Schedule of Expenditures of Federal and State Awards (SEFSA) as of June 30, 2025, totaling $132,635 in federal awards and $31,919 in local matching funds.