Audit 46193

Title: Loan/loan guarantee outstanding balances Accounting Policies: I.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Seagraves. 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 amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or changes in net position of the City of Seagraves.II.SUMMARY OF SIGNIFICATION ACCOUNTING POLICIESSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior yearsIII. U.S. DEPARTMENT OF AGRICULTURE LOAN PROGRAMThe City of Seagraves has received a U.S. Department of Agriculture Water and Waste Disposal Loan. The loan was entered into by the City during the year-ended September 30, 2021. Only the loan advances expended during the current year-end is included in federal expenditures presented in the Schedule. The balance of the loan outstanding at September 30, 2022 consists of:CFDA Number10.760Name of Federal Program Water and Waste Water Loan ProgramOutstanding Balance at September 30, 2022$3,145,000.00 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES (10.760) - Balances outstanding at the end of the audit period were 3145000.