Notes to SEFA
The accompanying Schedule of Federal Awards is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance as required by 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 of Pearl, Mississippi, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Pearl, Mississippi.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement.
The City of Pearl, Mississippi did not elect to use the 15% de minimis indirect cost rate allowed under the Uniform Guidance.