Notes to SEFA
Title: Summary of Significant Accounting Principles
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity
of the City of Grand Meadow under programs of the federal government for the year ended December 31, 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 the City
of Grand Meadow, it is not intended to and does not present the statement of balances arising from cash
transactions, changes in net cash position, or cash flows of the City of Grand Meadow.
De Minimis Rate Used: N
Rate Explanation: The City of Grand Meadow has not charged indirect costs to any of the federal programs. Therefore, the election
of the 10 percent de minimis indirect cost rate is not applicable as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures
are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.