Title: Basis of presentation
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes all federal grant activity of
the County of Fairfax, Virginia (“County”) and its component units. The County’s reporting entity is defined in
Note A, Part 1 of the County’s basic financial statements.
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”). Therefore, some amounts presented in this Schedule may differ from amounts
presented in, or used in the preparation of, the basic financial statements.
Title: Non-cash and other programs
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
The Commonwealth of Virginia Department of Agriculture and Consumer Services, Food Distribution Program,
administers the United States Department of Agriculture (“USDA”) donated food program within the
Commonwealth of Virginia. USDA provides values for all donated food. For Assistance Listing 10.555, National
School Lunch Program, the County received donated food for the fiscal year ended June 30, 2023. The value of
the donated food is included on the accompanying Schedule.
The purpose of the Homeland Security Program, Assistance Listing 97.067, is to enhance the ability of state and
local governments to prepare, prevent, respond to, and recover from terrorist attacks and other disasters. Several
Washington, DC metropolitan jurisdictions receive funding under this program. For the fiscal year ended June 30,
2023, the County received a donated vehicle from Metropolitan Washington Council of Government. The value of
the donated vehicle is included on the accompanying Schedule.
Additionally, under USAID Foreign Assistance for Programs Overseas Assistance Listing 98.001, Fairfax County’s
Urban Search and Rescue Team (USAR) can be deployed immediately by the U.S. Agency for International
Development (USAID) to assist in the federal government’s humanitarian response to a natural disaster. During
these deployments, USAR will bring capital equipment and non-capital supplies to their deployment site. Under
certain circumstances and with the federal government’s approval, USAR will transfer, or donate, the capital
equipment and non-capital supplies to designated relief organizations. For the year ended June 30, 2023, USAR
purchased and transferred equipment or supplies valued at $1,551,021 to these organizations.
Title: Loans
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
The U.S. Department of Housing and Urban Development has insured certain mortgage loan borrowings made
by the County through the Fairfax County Redevelopment and Housing Authority (Authority) in connection with
certain low-income housing projects. The loan program under Assistance Listing 14.248, Community
Development Block Grant Section 108 Loan Guarantees had outstanding principal balance of $2,751,000 on
June 30, 2023. This loan does not have any continuing compliance requirements; therefore, it is not reported on
the accompanying Schedule.
The Authority provides loans to qualified low-income borrowers through Assistance Listing 14.239, Home
Investment Partnerships Program (“HOME”), to promote home ownership and provide assistance with down
payments and closing costs. The outstanding principal balance of the HOME loans was $15,441,857 on June 30,
2023. Loans made in prior years to partnership entities that are believed to be uncollectable are tracked by the
Authority’s loan tracking software and the County’s financial system. Since there is no expectation of collecting
these loans, a 100% allowance is reflected, and the value of $7,545,190 is not included in the ending principal
balance.
The Authority also provides loans to qualified low-income homeowners or homeowners living in areas targeted
for improvement, resulting in the elimination of health or safety code violations, through Assistance Listing 14.218,
Community Development Block Grants/Entitlement Grants (“CDBG”). The outstanding principal balance of the
CDBG loans was $25,799,129 on June 30, 2023. Loans made in prior years to partnership entities that are
believed to be uncollectable are tracked by the Authority’s loan tracking software and the County’s financial
system. Since there is no expectation of collecting these loans, a 100% allowance is reflected, and the value of
$2,553,420 is not included in the ending principal balance.
In addition, the Authority held Federal Housing Administration – insured mortgage revenue bonds secured by
land, buildings, and equipment of $1,630,000 on June 30, 2023. This is reported under Assistance Listing 14.000.
On December 17, 2014, the Economic Development Authority and the County entered a Transportation
Infrastructure Finance and Innovation Act (“TIFIA”) loan agreement under Assistance Listing 20.223 with the
United States Department of Transportation. The TIFIA loan is for the aggregate principal amount of up to $403.3
million. This loan is to fund the County’s obligated project costs for the construction of Phase Two of the Metrorail
Silver Line extension. The outstanding balance of the TIFIA loan was $436,344,725 on June 30, 2023, which
includes principal and capitalized interest. The maximum principal available on the loan was reached in a prior
year; therefore, no additional draws will be made against the loan. Under the terms of the loan agreement, the
County will begin repayment on October 1, 2023. This loan does not have any continuing compliance
requirements; therefore, it is not reported on the accompanying Schedule.
Title: Transportation grants
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
The County’s transportation grants are typically multi-year projects with flexible funding sources that result in
funding allocation changes throughout the life of the project. Accordingly, due to the inherent nature of these
transportation grants, the County prepares the accompanying Schedule using the best information available at
the time of reporting. In cases where it is difficult to identify the mix of federal and state money under the federal
transportation program, the expenditure is reported on the accompanying Schedule.
Title: Disaster grants – public assistance (presidentially declared disasters)
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
After a presidentially declared disaster, FEMA provides assistance under the federal program, Disaster Grants – Public Assistance (Presidentially Declared Disasters) (Assistance Listing 97.036), to reimburse eligible costs associated with debris removal, emergency protective measures and the repair, restoration, reconstruction or replacement of public facilities, or infrastructure damaged or destroyed as a result of the federally declared disaster or emergency. The federal government typically makes reimbursements in the form of cost-share grants, but cost-share requirements were waived for expenditures incurred as a result of the COVID-19 pandemic. For the fiscal year ended June 30, 2023, FEMA approved $5,946,823 in eligible expenditures that were incurred in both the current and prior fiscal years as follows: FY 2022 $5,288,988 and FY 2023 $657,835. These expenditures are reported on the accompanying Schedule.
Title: COVID-19 pandemic expenditures
Accounting Policies: Except for the beginning loan balances, expenditures reported on the accompanying Schedule are reported on
the modified accrual basis of accounting as defined in Note A, Part 3 of the County’s basic financial statements.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited for reimbursement.
The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The County is using NICRA with a rate of 14.21%
Several Acts of Congress provided relief funding to respond to the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed on March 27, 2020, to provide relief from the impact of the COVID-19 pandemic. In addition, the American Rescue Plan Act was signed on March 11, 2021, to provide additional assistance. Included in the Acts are provisions and funding specific to state and local governments to protect their communities during this challenging period. During the fiscal year ended June 30, 2023, the County received and expended COVID-19 funding for authorized purposes. For SEFA reporting, the prefix “COVID-19” is used in the name of each federal program that has COVID-19 related expenditures.