Notes to SEFA
Accounting Policies: 1. GeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federalfinancial assistance programs of the City of Mountain Brook, Alabama. All federal financialassistance received directly from federal agencies, as well as federal financial assistance passedthrough other state and local government agencies, is included in the schedule.2. Basis of accountingThe accompanying Schedule of Expenditures of Federal Awards is presented using the modifiedaccrual basis of accounting, which is described in Note 1 to the City's financial statements.3. Indirect costThe City does not utilize the 10 percent de minimis indirect cost rate allowed under the UniformGuidance.4. Federally funded insurance and federally funded loansThe City has no federally funded insurance and no federally funded loans or loan guarantees for thefiscal year ended September 30,2022.5. Non-cash awardsDuring the year ended September 30, 2022, the City did not receive any non-cash federalassistance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.