Notes to SEFA
Title: OUTSTANDING LOANS OF FEDERAL FUNDS (CONTINUED)
Accounting Policies: 1. BASIS OF PRESENTATION - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Municipality under programs of the federal government for the year ended June 30, 2022. 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). Therefore, some amounts presented in this Schedule may differ from the amounts presented in, or used in the preparation of, the basic financialstatements. Because the Schedule presents only a selected portion of the operations of the Municipality, it is not intended toand does not present the financial position and changes in net position of the Municipality. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Assistance Listing Number is a program identification number. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Municipality, known as passthrough awards, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the passthrough entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. 3. INDIRECT COST RATE - The Municipality has elected not to use the ten percent the minimus indirect cost rate allowed under the Uniform Guidance. 4. OUTSTANDING LOANS OF FEDERAL FUNDS - The following is a summary of outstanding loans at cost by Assistance Listing Number as of June 30, 2022. Federal funded loans provided under these programs are included as expenditure on the schedule of expenditure of Federal Awards. Per Uniform Guidance, loans proceed that were received and expended in prior years are not considered federal awards expended (and thus not shown on the schedule of expenditures of federal awards) as those loans do not include continuing compliance requirements other than repayment of the loans. The Municipality is required to identify in the notes to the schedule of expenditures awards the balances outstanding at the end of the period.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Community Development Block Grant - Section 108, Loan Guarantees 14.248 $ 430,000,Community Facilities Loans and Grants 10.780 5,480,787, TOTAL $ 5,910,787.