Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Blackduck (the City) under programs of the federal government for the year ended December 31, 2025. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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. Please see the Schedule on the previous page where the federal loan amounts are disclosed.
The City participates in federal loan programs administered by the United States Department of Agriculture. For purposes of the Schedule, expenditures of federal awards include the beginning balance of loans for which the federal government imposes continuing compliance requirements, as well as any new loans received during the fiscal year. At December 31, 2025, the outstanding balance of loans subject to continuing compliance requirements totaled $1,902,428. These loans are included in the federal expenditures presented in the accompanying Schedule 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.