Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City under programs of the federal government for the year ended December 31, 2024. The information in this 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/fund balance or cash flows of the City.
The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended December 31, 2024. Governmental funds and proprietary funds account for the City’s federal grant activity. Amounts reported in the Schedule are recognized on the modified accrual basis of accounting when they become a demand on current available federal resources and eligibility requirements are met, or on the accrual basis or accounting at the time liabilities are incurred and all eligibility requirements are met, depending on the basis of accounting used by the respective fund. 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, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
The City has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The Community Development Block Grant Section 108 Loan Guarantee (Federal Assistance Listing Number 14.248) is administered directly by the City, and balances and transactions relating to these programs are included in the City's basic financial statements. The balance of the outstanding loan at December 31, 2024, was $716,000.