Notes to SEFA
Accounting Policies: Significant accounting policiesBasis of presentationThe SEFA includes the federal grant activity for the city and is presented on the modified cash basis ofaccounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in thisschedule may differ from amounts presented or used in the preparation of the basic financial statements.Federal financial assistancePursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federalagency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loanguarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, non-monetaryfederal assistance, including federal surplus property, is included in federal financial assistance and,therefore, is reported on the schedule, if applicable. Federal financial assistance does not include directfederal cash assistance to individuals. Solicited contracts between the state and federal government forwhich the federal government procures tangible goods or services are not considered to be federal financialassistance.Major programsThe Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs.Major programs for the city are those programs selected for testing by the auditor using a risk-assessmentmodel, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programswith similar requirements may be grouped into a cluster for testing purposes.Reporting entityThe reporting entity is fully described in the notes to financial statements. The schedule includes all federalprograms administered by the city for the year ended June 30, 2022.Indirect Cost RateThe city has not elected to use the 10% de minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.