Notes to SEFA
Title: NOTE 3 NON-CASH AWARDS
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City ofCallaway, Florida (the City), and is presented on the modified accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or usedin the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City did not receive non-cash federal awards during the year ended September 30, 2022.
Title: NOTE 4 CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City ofCallaway, Florida (the City), and is presented on the modified accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or usedin the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant monies received and disbursed by the City are for specific purposes and are subject to review by the grantoragencies. Such audits may result in disallowed expenditures under the terms of the grants. Based upon priorexperience, the City does not believe that such disallowances, if any, would be material.