The City of New Orleans (the “City”) was incorporated in 1805. The City’s system of government is established by the Home Rule Charter which became effective in 1954. The City operates under a Mayor-Council form of government. The City provides the following types of services as authorized by its charter: public health and safety, streets, sanitation, water and sewerage, planning and zoning, recreation and general and administrative services. Education and welfare are administered by other governmental entities.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of the federal awards of the City of New Orleans (the City). 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 assets, or cash flows of the City.
Grant expenditures in the Schedule are generally recognized under the accrual basis of accounting when the related liability is incurred, if measurable. Vacation and sick leave are recognized when paid. Current grant expenditures include direct expenditures and expenditures of federal awards passed through other governmental agencies. Expenditures are recognized following the cost principles contained in the Uniform Guidance. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The preparation of the Schedule in conformity with accounting principles generally accepted in the United States of America requires management to make certain assumptions that affect the reported amounts of expenditures during the reporting period. Actual results could differ from those estimates.
The City did not elect to use the fifteen (15) percent de minimis cost rate as covered in paragraph 200.414 of the Uniform Guidance.
The City is subject to audit by federal agencies or their designees for compliance with contractual and programmatic requirements with regard to federal programs administered by the City. The determination of whether any instances of noncompliance that will ultimately result in the remittance of any ineligible or disallowed costs cannot be presently determined. When applicable, the repayment of any remaining ineligible and disallowed costs shall be funded from non-federal funds.
The City is the recipient of numerous federal grants and awards. These grants and awards are governed by various federal requirements, guidelines, regulations and contractual agreements. The administration of the programs and activities funded by these grants and awards is under control of the City and is subject to audit and review by the applicable funding sources. Any grant or award found not to be properly spent in accordance with the requirements, guidelines, regulations and contractual agreements of the funding source may be subject to recapture. The audit of the federal award programs of the City for the year ended December 31, 2025, did not disclose instances of non-compliance that may be significant to the Schedule.
The City’s major federal awards programs for the year ended December 31, 2025, were determined based upon program activity. The City’s “Type A” federal awards programs for the year ended December 31, 2025, were all federally-assisted high risk programs for which program activity was equal to or greater than $3,000,000 during the year ended December 31, 2025. See listing of major programs in the Schedule of Findings and Questioned Cost - Schedule I - Summary of Independent Auditors’ Results, page 19.