Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of City of Earling, Iowa (the City). The City’s reporting entity is defined in note A to the City’s financial statements. Federal financial assistance received directly from federal agencies, as well as passed through other governmental agencies, is included on the Schedule. The accompanying schedule presents total expenditures for each federal award program in accordance with U.S. Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal program titles are reported as presented in the Federal Assistance Listing Catalog whenever possible.
The Schedule is prepared on the cash basis of accounting
The City has elected not to charge the 10% de minimis indirect cost rate to its federal award programs.
The City receive funds under various federal grant programs, and such awards are to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies, which may impose sanctions in the event of noncompliance. Management believes that is has complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have any material financial impact.