Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of St. Clair Shores 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). Because the Schedule presents only a selected portion of the operations of City of St. Clair Shores, it is not intended to and does not present the financial position, changes in fund balance or net position, or cash flows of the City of St. Clair Shores.
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
See table at the Notes to the Schedule of Expenditures of Federal Awards. * Under the equitable sharing program, policing agencies seize assets which are pooled, and then allocated to participating agencies. Participating agencies are allowed to carryover balances of the funds allocated to them from year to year as expenditures will not always equal the amounts received for any given year.** Program income received which is related to the Community Development Block Grant is recorded as federal revenue. The program income is required to be spent on allowable expenditures as identified by the grant. The program income received in some years exceeds the amount spent and is carried over into the next fiscal year.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual or accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients under assistance listing number 14.218 in the amount of $197,675.