Notes to SEFA
The accompanying schedule of expenditures of federal awards 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, using the modified accrual basis of accounting. Therefore, some amounts presented in this schedule may differ from amounts presented in the financial statements. 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 fund balance, or cash flows of the City.
Governmental fund types account for the majority of the City’s federal grant activity. Expenditures reported in the schedule of expenditures of federal awards are recognized on a modified basis of accounting. Subrecipient expenditures are recorded on a cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Non-cash expenditures are included in the schedule.
The City has not elected to use the 15% de minimis cost rate.
The City did not allocate any federal expenditures to subrecipients.
As of December 31, 2025, the City's liability relating to the Drinking Water State Revolving Fund (SRF) Loan (ALN 66.468) is $121,198. During 2025, the City also received $35,652 of principal forgiveness under the loan, which is not included in the liability.