Notes to SEFA
Title: Revolving loan Program income
Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Citys financial statements. The City uses a modified accrual basis of accounting for its governmental funds and full accrual basis of accounting for its proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.The city has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City participates in the Housing and Urban Development HOME Program for low-income individuals, as part of a regional consortium administered through the City of Richland. The City is not privy to information on what portion of funds received from the City of Richland are derived from program income. The amount of loan funds disbursed to program participants for the year was $9,842 and is presented in this schedule. The amount of principal and interest in loan repayments received for the year was $234,104.
Title: Program Costs
Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Citys financial statements. The City uses a modified accrual basis of accounting for its governmental funds and full accrual basis of accounting for its proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.The city has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Citys portion, are more than shown. Such expenditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Federal Loans
Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Citys financial statements. The City uses a modified accrual basis of accounting for its governmental funds and full accrual basis of accounting for its proprietary funds.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.The city has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City was approved by HUD to receive a loan totaling $3,781,000 in 2021 to renovate Peanuts Park within the Citys downtown area. The amount listed for this loan includes the expenses funded with the loan proceeds within the current fiscal year. The balance owing at the end of the period is $3,401,000 which is reported on the Citys Schedule of Liabilities.