Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Sacramento, California (City) under programs of the federal government for the fiscal year ended June 30, 2025. The information in the 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City. As a result of the COVID-19 pandemic, many new federal programs have been established and funding has been added to existing federal programs. Expenditures funded from the following acts are denoted by the prefix COVID-19 in the federal program title in the Schedule: • Coronavirus Preparedness and Response Supplemental Appropriations Act • Families First Coronavirus Response Act • Coronavirus Aid, Relief, and Economic Security Act (CARES Act) • Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) • American Rescue Plan Act (ARP)
Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for governmental funds and the full accrual basis for proprietary funds. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown, if any, in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
The ALNs included in the accompanying Schedule were determined based on the program name, review of grant contract information, and the U.S. General Service Administration’s SAM.gov website.
The City has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance Section 2 CFR 200.414.
The City is currently engaged in litigation against the federal government concerning the suspension of certain federal grant funds. As of March 30, 2026, several federal grant programs listed in the Schedule have been impacted by the freeze, resulting in delayed reimbursements and uncertainty regarding future funding availability. The City continues to comply with all grant requirements and is actively pursuing legal remedies to ensure the release of awarded funds. While the outcome of this litigation remains uncertain, the City is monitoring the situation closely and assessing the potential financial and operational impacts.