Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the City of Portland and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
The schedule of expenditures of federal awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in note 1 of the basic financial statements. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred until earned. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The City has not elected to use the 10% deminimus indirect cost rate.
Of the federal expenditures presented in the SEFA, the City did not provide any federal awards to subrecipients.