Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Bay City (the City) under programs of the federal government for the year ended June 30, 2023. 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, it is not intended to and
does not present the financial position, changes in net position, or cash flows of the City. The City’s reporting entity is defined in Note 1 of the City’s annual comprehensive financial report. The City’s financial statements include the operations of the Bay City Housing Commission, a discretely presented component unit, which received federal awards that are not included in the Schedule for the year ended June 30, 2023, as this entity was separately audited
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The following table describes the reconciliation of the federal revenue per the financial statements to the expenditures reported on the Schedule:
Federal revenue per the financial statements:
Governmental funds: $5,143,942;
Proprietary funds: $429,510;
Change in deferred inflows of resources: $22,768;
Add program income: $188,724;
Total expenditures of federal awards per the Schedule: $5,784,944.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients as follows:
Assistance Listing - 14.218
Number Amount - $33,000