Notes to SEFA
Title: Organization
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
The City of Horton, Kansas, (the City), is the recipient of several federal awards. All federal awards received
directly from federal agencies as well as those awards that are passed through other government agencies,
are included on the Schedule of Expenditures of Federal Awards.
Title: Basis of Presentation
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City
and is presented on the Kansas regulatory basis of accounting, which includes cash disbursements, accounts
payable and encumbrances. The information presented in this schedule is in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts
presented in this schedule may differ from amounts presented in or used in the preparation of the basic
financial statements. The City elected not to use the 10% de minimis indirect cost rate.
Title: Local Government Contributions
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
Local cost sharing is required by certain federal grants. The amount of cost sharing varies with each program.
Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards.
Title: Additional Audits
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
Grantor agencies reserve the right to conduct additional audits of the City’s grant programs for economy and
efficiency and program results that may result in disallowed costs to the City. However, management does not
believe such audits would result in any disallowed costs that would be material to the City’s financial position
as of December 31, 2022.
Title: Outstanding Loans
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
The City did not have any outstanding loans under any federal grants as of December 31, 2022.
Title: Pass Through Numbers
Accounting Policies: Kansas Regulatory Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Kansas allows municipalities to use an accounting method other than GAAP
Pass through numbers have not been assigned to pass through grants on the Schedule of Expenditures of
Federal Awards.