Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant loan activity of the City of Petersburg under programs of the federal government for the year ended June 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 of Petersburg, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Petersburg. 2. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as a reimbursement.
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 4198284.
Title: Loans
Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant loan activity of the City of Petersburg under programs of the federal government for the year ended June 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 of Petersburg, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Petersburg. 2. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as a reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
3.The City of Petersburg was approved by the USDA Rural Utilities Service to receive a loan totaling $4,706,000 to undertake a project of acquisition, construction, enlargement, equipping, and Water Supply System improvements, including water mains, valve and hydrant replacements, water meter replacements, together with all related site improvements, appurtenances and attachments. The amount listed for this loan includes the proceeds used during the year. The loans are also reported on the Citys Statement of Net Position