Notes to SEFA
The accompanying Schedule of Expenditures of State and Federal awards (the Schedule) presents the activity of all state and federal award programs of the City of Las Cruces, New Mexico (the City). The City's reporting entity is defined in Note 1 to the City's financial statements. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule is not intended to, and does not present the financial position, changes in net postion or cash flows of the City.
Expenditures reported in the accompanying Schedule are reported on the modified accrual basis of accounting. These expenditures are recognized in accordance with 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 the Schedules, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 15 percent de Minimis indirect cost rate alowed under the Uniform Guidance.
On May 24, 2010, the City was awarded a promissory note from the U.S. Department of Housing and Urban Development in the amount of $2,000,000. The note was awarded under the HUD Section 108 loan guarantee program for the purpose of constructing, rehabilitating, and improving the Museum of Nature and Science in the City. Land Serves as collateral for the loan and interest is charged at a rate of 2.0 percent. As of the year ended June 30, 2017, the City expended the full $2,000,000 of the proceeds. Payments on the loan of the year ended June 30, 2025, included $118,000 in principal and $36,552 in interest, leaving an outstanding balance of $793,000. Proceeds of the loan that were received and expended in prior years impose no continuing compliance requirements. The balance of the loan is not considered federal awards expended for the year ended June 30,2025.
The following is a reconciliation of the expenditures reported in the schedules of expenditures of federal awards to the expenditures reported in the financial statements for the City: See the Notes to the Sefa for chart/table