The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Union Point, Georgia under programs of the federal government for the fiscal year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration 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 of Union Point, Georgia, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Union Point, Georgia.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
City of Union Point, Georgia has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City participates in loan programs administered by the United States Department of Agriculture (USDA), Rural Development. During the fiscal year ended September 30, 2022, the City of Union Point, Georgia had outstanding USDA Rural Development direct loans that were financed through the issuance of the City of Union Point, Georgis Water and Sewer System Revenue Bonds, Series 2021A, in the principal amount of $2,173,000 and Series 2021B in the principal amount of $817,000. The bonds are fully registered as to both principal and interest in the name of the United States of America acting through the Department of Agriculture and are held entirely by USDA Rural Development. The bonds are secured by a first-lien pledge of net revenues of the City’s water and sewer system and are issued on a parity basis with the City’s Series 2008 and Series 2015A and 2015B Water and Sewer Revenue Bonds. The balances and transactions relating to this program are included in the City of Union Point, Georgia’s basic financial statements.
Direct loan proceeds were used in fiscal year 2022 to pay off USDA required interim financing totaling $1,904,330; $853,395, of the total interim financing, was included in the schedule of expenditures of federal awards for fiscal year 2021 per the Uniform Guidance.
See notes to the SEFA for outstanding loan balances.