Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Lawrence, Massachusetts 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 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 position, or cash flows of the City.
After a presidentially declared disaster, the Federal Emergency Management Agency (FEMA)provides disaster grants to reimburse eligible costs related to the disaster. The federal government makes reimbursements in the form of cost-shared grants that require state matching funds. The $273,897 reported as expenditures under Federal Assistance Listing Number 97.036 was incurred in 2021.
Total expenditures in the accompanying Schedule for the HOME Investment Partnership (HOME) Program (ALN 14.239), the Lead Hazard Reduction Demonstration Grant (Lead) Program (ALN 14.905), and the Community Development Block Grants – Entitlement Grants (CDBG) Program (ALN 14.218) includes the total amount of new loans made during fiscal year 2025, as well as the unpaid principal balance from loans originated in previous years at the beginning of the audit period for which the Federal government imposed “continuing compliance requirements”. As of July 1, 2024, the HOME, Lead, and CDBG programs had loan balances subject to continuing compliance requirements of $18,221,077, $834,195 and $1,100,087, respectively. Uniform Guidance (2 CFR 200.502) requires this amount be included in the “basis for determining Federal awards expended” on the current year Schedule as the Federal government is at risk for the loans until the debt is repaid. The HOME total expenditures presented on the schedule of expenditures of federal awards of $18,575,207 includes the amount of loans subject to continuing compliance requirements at the beginning of the audit period plus new loans and the amount of current year expenditures which was $354,130. The Lead total expenditures presented on the schedule of expenditures of federal awards of $1,300,702 includes the amount of loans subject to continuing compliance requirements at the beginning of the audit period plus the amount of new loans and current year expenditures which was $466,507. The CDBG total expenditures presented on the schedule of expenditures of federal awards of $2,332,332 includes the amount of loans subject to continuing compliance requirements at the beginning of the audit period plus the amount of new loans and current year expenditures which was $1,225,035.