Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Billings, Montana for the year ended June 30, 2025. The City’s reporting entity is described in Note 1 in the City’s basic financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other governmental agencies, is included in the schedule. The information in this schedule is presented in accordance with 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements.
ARPA fund eligibility requirements are considered to be met at the time of project completion. The State of Montana withholds payments to the City until projects are complete, therefore, the City considers that the eligibility of the expenditures as being met at that point in time. Once these projects are complete and the grant funds are remitted to the City from the State is the point in which the expenditures are recognized in the Schedule of Expenditures and Federal Awards. The below table depicts the reconciliation of each of the relevant grant awards that are affected:
FEMA Disaster Declaration #4655 - FEMA Disaster Declaration Grant #4655 is an ongoing grant as a result of the flood event on June 14, 2022. Fiscal Year 2023 expenditures included Emergency Protective Measures, Debris Removal, and other immediate needs. During Fiscal Year 2024, the City and FEMA have collaborated to obligate funding for a final Engineering and Design (A&E) project for repairs and hazard mitigation from damages on the second water intake. A portion of the project was obligated in Fiscal Year 2024 and Engineering and Design Project (A&E) was fully obligated in Fiscal Year 2025. FEMA will not approve expenditures on the project until it has been fully reviewed and obligated, therefore, the City considers that the eligibility of the expenditures as being met at that point in time. The projects were obligated in FY25 for reimbursement and the expenditures that received reimbursement are recognized in the Schedule of Expenditures and Federal Awards.