Notes to SEFA
Accounting Policies: Note 1 - Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the City of Marathon, Florida (the City). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.Note 2 - Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance as well as other applicable provisions of contracts and grant agreements, wherein certain types of expenditures are not allowable or are limited as to reimbursements, as applicable.Note 3 - Indirect Cost RateThe City did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Note 4 - ContingencyThe grant and contract revenue received is subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor/contract agencies would become a liability of the City. In the opinion of management, all grant and contract expenditures are in compliance with the terms and conditions of the grant agreements and applicable federal/state laws and other applicable regulations.Note 5 - Prior Year ExpendituresThe Schedule includes contracts/grants from the U.S. Department of Homeland Security in the amount of $ 84,893 that represent expenditures from the 2017 and 2018 fiscal years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.