Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the Milwaukee Metropolitan Sewerage District (the District) under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the District, it isnot intended to and does not present the financial position, changes in net position or cash flows of theDistrict. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the Schedule represent adjustments or credits made in the normal course of business toamounts reported as expenditures in prior years. Pass-through entity identifying numbers are presentedwhere available. Grant funds receivable and related revenues are recognized as the related capital project expendituresare incurred. This policy differs from actual grant billings, which are prepared in accordance withrespective grant provisions. Differences between grant funds receivable and grant funds billed are causedprimarily by planning costs incurred on construction projects that have not been finalized, architecturaland engineering costs not billed due to procedural compliance limitations, and construction costsincurred, but unpaid. These temporary differences will reverse over the remaining award period.Loans payable are recognized as loan funds are received. Only the receipts from the federal loanprograms during 2022 have been considered for major program determination. The outstanding balanceof the federal loan programs at December 31, 2022 that relate to capital project expenditures from prioryears were not considered for major program determination. Loan programs funded through the State ofWisconsin Department of Administration are not subject to single audit testing.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. The District prepares theSchedule of the Final Capital Projects Indirect Cost Rate annually following the method previousapproved by the Environmental Protection Agency.