Notes to SEFA
Title: Accounting for Restricted funds
Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using the modified accrual basis of accounting which is described in Note 1B.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
No separate funds or accounts are maintained for federal programs. The City assumed first in first out for program monies.
Title: Subrecipients
Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using the modified accrual basis of accounting which is described in Note 1B.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City does not direct any federal program monies to subrecipients.
Title: Reliance on the Federal Government
Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using the modified accrual basis of accounting which is described in Note 1B.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City does not rely on the federal government for its operations. City revenues from all sources combined totaled $3,017,766. OF this amount federal revenues totaled $1,121,201 or 37%, of which $1,066,223 was for capital projects rather than for operations.
Title: USDA Rural Utility Services (RUS) Grants & Loans (10.760) - Sewer Project
Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using the modified accrual basis of accounting which is described in Note 1B.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The City received a RUS grant of $1,079,749 of which $997,475 was spent in fiscal year 2022. In previous years the City received a RUS loan for the water project. The water and sewer projects are worked on every other year. In fiscal year 2022, the Sewer project was conducted.