Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE 1 SIGNIFICANT ACCOUNTINGS POLICIESBasis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Spanish Fort, Alabama (the City) under the programs of the federal government for the year ended September 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 the City, it is not intended to and does not present the financial position or changes in net position of City of Spanish Fort, Alabama. Basis of AccountingThe Schedule of Expenditures of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred. Indirect Cost RateThe City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUNDS (66.458) - Balances outstanding at the end of the audit period were 240000.
Title: STATE REVOLVING FUND LOAN
Accounting Policies: NOTE 1 SIGNIFICANT ACCOUNTINGS POLICIESBasis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Spanish Fort, Alabama (the City) under the programs of the federal government for the year ended September 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 the City, it is not intended to and does not present the financial position or changes in net position of City of Spanish Fort, Alabama. Basis of AccountingThe Schedule of Expenditures of Federal Awards is presented based on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one-year availability period is used for revenue recognition for all governmental fund revenues. Expenditures are recorded when the related liability is incurred. Indirect Cost RateThe City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The original loan amount was $480,000, of which $230,000 was forgiven at the inception of the loan. The value of the loan outstanding under this federal program as of September 30, 2022 was $240,000. During 2022, $402,732 of allowable costs incurred represents federal expenditures to date as reflected on the schedule of expenditures of federal awards.