Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of the federal award programs of the City of San José, California (the City). The City’s reporting entity is defined in Note I to its basic financial statements. The SEFA includes all federal awards received directly from federal agencies and federal awards passed-through other governmental agencies.
The accompanying schedule is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds and the accrual basis of accounting for program expenditures accounted for in the proprietary funds as described in Note I to the City’s basic financial statements. The City did not elect to use the de minimis cost rate as covered in U.S. Code of Federal Regulations, Title 2 section 200.414 Indirect (F&A) costs. For reimbursable grants, the City recognizes revenues commencing on the date of grant approval (provided all eligibility requirements are met) since this is when the City is eligible to claim expenditures for reimbursements. Pass-through entity identifying numbers are presented where available.
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures in the general, special revenue, and capital projects funds and as expenses for non-capital expenditures and as additions to capital assets for capital related expenditures in the enterprise funds. Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.
The following table summarizes programs funded by various sources or grants whose totals are not shown on the SEFA:
The following schedule represents expenditures and revenues for the Internet Crimes Against Children Task Force Program from the U.S. Department of Justice (Federal funding) and the California Governor’s Office of Emergency Services (CalOES) (State funding) for the year ended June 30, 2025. Federal funding of the program is reported under Assistance Listing Number (ALN) 16.543.
The City receives federal disaster assistance from the Federal Emergency Management Agency (FEMA), under ALN 97.036 – Disaster Grants – Public Assistance (Presidential Declared Disaster) (Program). The Program is administered through the California Governor’s Office of Emergency Services (CalOES), which serves as the pass-through entity for the State of California and the City participates in the Program as a subrecipient. The Program provides federal grant funding for debris removal, emergency protective measures, and the repair, replacement, or restoration of disaster-damaged public infrastructure resulting from federally declared disasters. During the year ended June 30, 2025, the City reported $20,460,509 in allowable expenditures incurred during the years ended June 30, 2020 to June 30, 2025. Federal funding for eligible projects is approved and obligated by FEMA and transmitted through CalOES via Notices of Obligation issued through FEMA’s Grants Portal. Due to the nature of FEMA disaster recovery projects and the multi-year reimbursement process, expenditures may be incurred in earlier fiscal years and subsequently included in the SEFA once FEMA formally obligates the funding and the City determines the costs to be allowable under the Program.