Notes to SEFA
The accompanying schedule of expenditures of federal awards for the City are 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). The schedule of expenditures of federal awards include all federal awards of the City. 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, or cash flows of the City.
Expenditures in the schedule are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the City’s 2025 fund financial statements. Accounts receivable at year-end consists of federal program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal programs that exceed recorded City expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. 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. The City has not elected to charge a de minimis indirect cost rate of 15% of modified total costs.
The City’s federal oversight agency is the Department of Administration.