Page 251 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Notes to Schedule of Expenditures of

Federal and State Awards

City of Winston-Salem, North Carolina

For the Fiscal Year Ended June 30, 2018

(1) Basis of Accounting

The accompanying schedule of expenditures of federal and state awards (SEFSA) presents expenditures using
the modified accrual basis of accounting, which is described in Note 1 of the City's basic financial statements,
except for the expenditures of the U.S. Department of Transportation which are recorded on an accrual basis.
The information in this schedule is presented in accordance with the requirements of Title 2 US Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards and the State Single Audit Implementation Act. 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 of Winston-Salem has elected to use the 10-percent de minimis indirect cost
rate as allowed under the Uniform Guidance.

(2) Relationship to Basis Financial Statements

The City records all federal and state financial award revenues in the special revenue funds except for the
U.S. Department of Transportation and Emergency Management Assistance Funds which are recorded in the
Transit Authority and General Fund, respectively.

(3) Loans Outstanding

The City of Winston-Salem had the following loan balances outstanding as of June 30, 2018. The loans made
during the year are included in the SEFSA in the federal expenditures presented in the schedule. Balances and
transactions during related to these programs are included in the City of Winston-Salem's basic financial
statements.

CFDA Amount
Program Title Number Outstanding

Capitalization Grants for State
Revolving Funds 66.458 $79,293,248

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