Notes to SEFA
Title: Note 4 - Program Costs
Accounting Policies: This schedule is prepared on the same basis of accounting as the Citys financial statements. The City uses the modified accrual basis of accounting for governmental funds and full accrual basis for proprietary funds.
De Minimis Rate Used: N
Rate Explanation: The City of Olympia has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Citys portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Federal Loans
Accounting Policies: This schedule is prepared on the same basis of accounting as the Citys financial statements. The City uses the modified accrual basis of accounting for governmental funds and full accrual basis for proprietary funds.
De Minimis Rate Used: N
Rate Explanation: The City of Olympia has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City of Olympia was approved by the Federal Environment Protection Agency (EPA), Washington State Public Works Board (PWB), Washington State Department of Commerce (DOC) and the Washington State Department of Health (DOH) to receive a loan totaling $2,658,320 for the upgrades and repairs to the Boulevard Road Reservoir. The amount, $85,434 listed in this schedule is for the federal portion of expenditures for the reporting year.
Title: Note 5 - H.U.D. Community Development Block Grant Program
Accounting Policies: This schedule is prepared on the same basis of accounting as the Citys financial statements. The City uses the modified accrual basis of accounting for governmental funds and full accrual basis for proprietary funds.
De Minimis Rate Used: N
Rate Explanation: The City of Olympia has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Prior to 2014, the City utilized a revolving loan style program for low income housing renovation, of which CDBG program income was utilized for funding of the new loans. Under this federal program, repayments to the City are considered program income and loans of such funds to eligible recipients are considered expenditures. Beginning the second quarter of 2014, the City no longer offered these loans resulting in a change of program income and use reporting. In September 2021, the City reverted to using program income to fund new loans. As such, reported expenditures include the expenditures of program income. In 2022, the City expended $69,231 in program income, and $442,621 in CDBG Entitlement Grants. The City is on the additive method of reporting with HUD therefore the program income is reported as additions to the authorized grant amounts. During 2022, the City expended a total of CDBG Entitlement Funds in the amount of $511,852 which is reported on this schedule.