Notes to SEFA
During the fiscal year ended September 30, 2025, the City incurred substantial costs related to Hurricane Michael. Per the OMB Compliance Supplement, any reimbursements from the Federal Emergency Management Agency (FEMA) under Assistance Listing (AL) Number 97.036 are not to be recognized as expenditures for purposes of the Schedule of Expenditures of Federal Awards and State Financial Assistance until the respective Project Worksheets (PW) have been approved. At September 30, 2025, any expenditures incurred for PWs were for PWs that were approved and obligated. Therefore, at September 30, 2025, there were no deferred FEMA expenditures as the expenditures and the related revenues which have been recorded for financial statement purposes were equal to the amounts recorded on the Schedule of Expenditures of Federal Awards (including amounts recognized in prior years).
Project expenditures are subject to audit and adjustment. If any expenditures were to be disallowed by the grantor agency as a result of such an audit, any claim for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, all project expenditures included on the accompanying schedule are in compliance with the terms of the project agreements and applicable federal and state laws and regulations.