Notes to SEFA
Title: Note 3. Calculation of Economic Adjustment Assistance Expenditures Amount o
Accounting Policies: Note 1. Summary of Significant Accounting PoliciesA. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalgrant activity of the City under programs of the federal government for the year endedDecember 31, 2022. The information in the SEFA is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the SEFA presents only a select portion of the operations of the City, itis not intended to and does not present the financial position of the City.B. Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowed or are limited as to reimbursement. When federal grants are received on a reimbursementbasis, the federal awards are considered expended when the reimbursement isreceived.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During 2022, the federal EDA agreed to release its federal interest in the revolving loan fund award. The effective date of the release was March 10, 2022. The reported expenditures were calculated as follows in accordance with guidance by the grantor: (SEE PDF FOR TABLE)