Notes to SEFA
The financial reporting entity, as defined by Governmental Accounting Standards Board (GASB), consists of the primary government, which is the City of La Verne (City), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City as disclosed in the notes to the Basic Financial Statements.
Funds received under the various grant programs have been recorded within the special revenue, internal service, and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the special and capital projects funds and full accrual basis for internal service fund. Expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred.
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistancepassed through the State of California is included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.
The City did not elect to use the 10% de minimis indirect cost rate.
During the fiscal year ended June 30, 2025, the City disbursed $6,854 of federal awards to a subrecipient for the Community Development Block Grants/Entitlement Grants (ALN No. 14.218).