The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Municipality under programs of the federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR Part 200), Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Municipality, it is not intended to, and does not present, the financial position and changes in net position of the Municipality.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the following programs are recognized based on other unique requirements: ▪ Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal the net ACC subsidy for the PHA’s fiscal period. ▪ Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA has approved the nonfederal entity’s Project, and (2) eligible expenditures are incurred. ▪ Loans or loans guarantee programs. Expenditures equal the value of new loans made or received during the audit period plus the beginning of the audit period balance of outstanding loans from previous years for which the federal government imposes continuing compliance requirements. For loans with no imposed continuing compliance requirements, expenditures are recognized when the related costs financed with loan proceeds are incurred.
The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally-funded programs. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.
Community Facilities Loans and Grants – (ALN 10.766) After completion of the applicable capital improvements projects, during the fiscal year 2024-2025 the Municipality refinanced on a long-term basis two Community Facilities loans (CF direct loans) through two general obligation bonds as follows: USDA determined to impose continuing compliance requirements on CF direct loans to borrowers’ outstanding CF loan balances for fiscal years ending on or after June 30, 2022. CF borrowers are required to fund reserves, maintain insurance, deposit funds in Federally insured banks, meet financial covenants, maintain sufficient debt service ratios, and in some cases comply with additional requirements established as part of the loan approval process. These requirements indicate the continuing compliance requirements that CF borrowers must meet. Therefore, the full outstanding balances on GOB’s were considered federal awards expended and included on the Schedule.
Reconciliation of Expenditures presented in the Schedule of Expenditures of Federal Awards to the expenditures presented in the basic financial statements
The Single Audit reporting package, as defined and required in 2 CFR 200 for the fiscal year ended June 30, 2025, could not be submitted in a timely manner.