Notes to SEFA
Accounting Policies: Note 1 Significant Accounting PoliciesThe accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federalaward programs of the City of Fowler, California (the City). Federal awards received directly from federalagencies as well as federal awards passed through other nonfederal agencies, primarily the State of California,are included in the SEFA. The Citys reporting entity is defined in Note 1 to the Citys basic financialstatements.Note 2 Basis of AccountingThe accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted forin the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietaryfund types, as described in Note 1 to the Citys basic financial statements. The information in the SEFA ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ fromamounts presented in the basic financial statements.Note 3 Catalog of Federal Domestic Assistance (CFDA) NumbersThe CFDA numbers included in the accompanying SEFA were determined based on program name, reviewof grant contract information, and the Office of Management and Budgets Catalog of Federal DomesticAssistance.Note 4 Relationship to the Financial StatementsExpenditures of federal awards are reported in the Citys basic financial statements as expenditures/expensesin the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.Note 5 Indirect Cost RateThe City did not elect to use the 10% de minimus cost rate as covered in 2 CFR ?200.414.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.