Notes to SEFA
The accompanying schedule of expenditures of federal awards presents the activities of all federal award programs of the City of Lake Wales, Florida (the City), as well as the Lake Wales Airport Authority (the discretely presented component unit) for the year ended September 30, 2025. Federal awards received directly, as well as passed through to other government agencies, if any, are included in the schedule. For the year ended September 30, 2025, the City had no subrecipients and therefore did not pass any awards through to other government agencies.
The accompanying schedule of expenditures of federal awards are presented using the same basis of accounting as the fund in which the grant is recorded, generally the accrual or modified accrual basis, as described in Note 1 to the City’s financial statements. The City’s federal awards did not include indirect cost reimbursement and, therefore, the City did not elect to use the 15 percent de minimis cost rate as covered by 2 CFR 200.414.
The grant revenue amounts received are 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 agencies would become a liability of the City. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. Grant monies received and disbursed by the City or discretely-presented component unit are for specific purposes and are subject to review by the grantor agencies. Such reviews potentially may result in disallowed expenditures.
The City did not receive any federal non-cash assistance, including personal protection equipment, for the fiscal year ended September 30, 2025.