Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: #1-BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the City of Ludington under programs of the federal government for the year ended December31, 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 AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the City of Ludington, it is not intended to and does not present the financialposition, changes in net position, or cash flows of the City of Ludington. .# 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on theSchedule represent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
WATER AND WASTE DISPOSAL LOANS AND GRANTS (SECTION 306C) (10.770) - Balances outstanding at the end of the audit period were 37156000.
Title: RECONCILIATION OF SEFA TO FINANCIAL STATEMENTS
Accounting Policies: #1-BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the City of Ludington under programs of the federal government for the year ended December31, 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 AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the City of Ludington, it is not intended to and does not present the financialposition, changes in net position, or cash flows of the City of Ludington. .# 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on theSchedule represent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Reported in the Citys financial statements for the year ended December 31, 2022:Governmental Funds federal grants........................... $ 497,202Enterprise Funds federal grants............................. 448,797Enterprise Funds proceeds/expenditures from bond issue........ 291,200Component Unit federal grants.................................. 39,213 FINANCIAL STATEMENTS TOTAL.................1,276,412Award recognized in a prior year.......................................... 1,185 SEFA TOTAL AWARDS.........................$ 1,277,597