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 grant activity of City of Crystal Falls, Michigan under programs of the federal government for the year ended September 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 City of Crystal Falls, Michigan, it is not intended to and does not present the financial position or changes in net position of City of Crystal Falls, Michigan. 2).Expenditures reported in the Schedule are presented on the modified accrual basis of accounting for the Governmental Funds and the accrual basis of accounting for the Proprietary Funds. 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 to 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 $492,000.
Title: NOTES 4-6
Accounting Policies: 1).Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of City of Crystal Falls, Michigan under programs of the federal government for the year ended September 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 City of Crystal Falls, Michigan, it is not intended to and does not present the financial position or changes in net position of City of Crystal Falls, Michigan. 2).Expenditures reported in the Schedule are presented on the modified accrual basis of accounting for the Governmental Funds and the accrual basis of accounting for the Proprietary Funds. 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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
4).City of Crystal Falls, Michigan, has four loans outstanding with U.S. Department of Agriculture at September 30, 2022, for a total of $4,912,000. 5).Of the 2022 federal expenditures presented in the schedule, City of Crystal Falls, Michigan, provided no federal awards to subrecipients. 6).The major federal assistance program is listed in the Schedule of Findings and Questioned Costs. City of Crystal Falls, Michigan does not qualify as a low-risk auditee in accordance with the Uniform Guidance. Major programs, which must exceed 40% of the total federal awards expended, were selected using a risk-based approach based on auditors risk assessments. All other federal programs are considered non-major programs.
Title: NOTE 7
Accounting Policies: 1).Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of City of Crystal Falls, Michigan under programs of the federal government for the year ended September 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 City of Crystal Falls, Michigan, it is not intended to and does not present the financial position or changes in net position of City of Crystal Falls, Michigan. 2).Expenditures reported in the Schedule are presented on the modified accrual basis of accounting for the Governmental Funds and the accrual basis of accounting for the Proprietary Funds. 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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
7.Expenditures in this schedule are in agreement with the amounts reported in the financial statements. Following is a schedule reconciling the expenditures per the schedule of expenditures to the financial statements: Federal Expenditures $1,591,299 Current year - construction in progress (1,115,216) Reimbursements for prior year project expenses received during current year (448,683) Federal grant revenue per financial statements $27,400 Recap of Federal grant revenue per financial statements: General Fund $27,400