Title: Basis of Presentation
Accounting Policies: The accompanying schedules of expenditures of state and federal awards (Schedules) presents the activity of all state and federal award programs for the City of Las Cruces, New Mexico (the City). The Citys reporting entity is defined in Note 1 to the Citys financial statements. The information in the Schedules is presented in accordance with the requirements of the Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedules are not intended to, and do not present the financial position, changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported in the accompanying Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers arepresented where available. The City has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance.
Title: Federal Loans
Accounting Policies: The accompanying schedules of expenditures of state and federal awards (Schedules) presents the activity of all state and federal award programs for the City of Las Cruces, New Mexico (the City). The Citys reporting entity is defined in Note 1 to the Citys financial statements. The information in the Schedules is presented in accordance with the requirements of the Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedules are not intended to, and do not present the financial position, changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On May 24, 2010, the City was awarded a promissory note from the U.S. Department of Housing and Urban Development in the amount of $2,000,000. The note was awarded under the HUD Section 108 loan guarantee program for the purpose of constructing, rehabilitating, and improving the Museum of Nature and Science in the City. Land serves as collateral for the loan and interest is charged at a rate of 1.7 percent. As of the year ended June 30, 2017, the City expended the full $2,000,000 of the proceeds. Payments on the loan for the year ended June 30, 2022, included $101,000 in principle and $49,274 in interest, leaving an outstanding balance of $1,129,000. Proceeds of the loan that were received and expended in prior years impose nocontinuing compliance requirements. The balance of the loan is not considered federal awards expended for the year ended June 30, 2022.
Title: Reconciliation of the Schedules of Expenditures of Federal Awards
Accounting Policies: The accompanying schedules of expenditures of state and federal awards (Schedules) presents the activity of all state and federal award programs for the City of Las Cruces, New Mexico (the City). The Citys reporting entity is defined in Note 1 to the Citys financial statements. The information in the Schedules is presented in accordance with the requirements of the Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedules are not intended to, and do not present the financial position, changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following is a reconciliation of the expenditures reported in the expenditures of federal awards to the expenditures reported in the financial statements for the City: Expenditures in the schedule of expenditures of federal awards $8,929,290 Expenditures financed by other funding sources $59,521,100 Expenditures reported in the statement of revenues, expenditures, and changes in fund balance/net position - nonmajor governmental and enterprise funds $68,450,390.