Notes to SEFA
Title: Note 1- General
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the City's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City does not elect to use a 10% de minimis indirect cost rate allowed under section ?200.414(f).
The accompanying Schedule of Expenditures of Federal Awards presents federally assisted programs of the City of Virginia Beach, Virginia and the City's Component Units. The City's reporting entity is disclosed in Note 1A to the City's basic financial statements. Federal awards received directly from federal agencies as well as through other government agencies are included on the schedule.
Title: Note 3 - Loans
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the City's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City does not elect to use a 10% de minimis indirect cost rate allowed under section ?200.414(f).
The City of Va. Beach provides loans to qualified low income borrowers through CFDA #14.239, Home Investment Partnerships Program, to promote home ownership and provide assistance with down payments and closing costs. The outstanding principal balance of the HOME loans was $2,559,476 at June 30, 2022. The City of Va Beach provides loans to qualified low income homeowners or homeowners living in areas targeted for improvement, resulting in the elimination of health or safety code violations, through CDFA #14.218, Community Development Block Grants. The outstanding principal balance of $2,587,544 at June 30, 2022.
Title: Note 4 - Relationship to Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the City's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City does not elect to use a 10% de minimis indirect cost rate allowed under section ?200.414(f).
Revenues from federal awards are reported in the City's basic financial statements as follows: See Notes to the SEFA for Chart/table.
Title: Note 5 - Relationship to Federal Financial Reports
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the City's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City does not elect to use a 10% de minimis indirect cost rate allowed under section ?200.414(f).
Amounts reported in the accompanying schedule substantially agree with the amounts reported in the related federal financial reports except that certain federal financial reports are prepared on the cash basis of accounting and the Schedule of Expenditures of Federal Awards is prepared on the basis of accounting described in Note 2 above.
Title: Note 6 - Highway Planning and Construction Grants
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the City's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The City does not elect to use a 10% de minimis indirect cost rate allowed under section ?200.414(f).
The City's Highway Planning and Construction Grants are typically multi-year projects with flexible funding sources that result in funding allocation changes throughout the life of the project. Accordingly, due to the inherent nature of these transportation grants, the City prepares the accompanying Schedule using the best information received at the time of reporting. In cases where it is difficult to identify the mix of Federal and State money under the Highway Planning and Construction program, the expenditures are reported on the accompanying schedule.