Audit 18519

Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of theMunicipality under programs of the federal government for the year ended June 30, 2022. The information inthis schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Therefore, some amounts presented in this schedule may differ from the amountspresented in, or used in the preparation of, the basic financial statements. Because the schedule presentsonly a selected portion of the operations of the Municipality, it is not intended to and does not present thefinancial position and changes in net position of the Municipality.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified-accrual basis of accounting, except forSection 8 Housing Choice Voucher Program (HCV). Expenditures are recognized when the related liabilityis incurred following the cost principles contained in Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Expenditures for HCV Program are reported on astatutory basis as required by the U.S. Department of Housing and Urban Development. Such expendituresshould equal the net ACC subsidy for the PHAs fiscal period.Public assistance grants (FEMA) expenditures are recognized in the period when: (1) FEMA has approvedthe PW, and (2) eligible expenditures are incurred.The Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance(CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistance awardmechanisms, including federal grants and cooperative agreements. Assistance listings are detailed publicdescriptions of federal programs that provide grants, loans, scholarships, insurance, and other types ofassistance awards. The Sam.gov assistance listing is the publicly available online database showing allavailable Federally-funded programs.State or local government redistributions of federal awards to the Municipality, known as passthroughawards, should be treated by the Municipality as though they were received directly from the federalgovernment. Uniform Guidance requires the schedule to include the name of the passthrough entity andthe identifying number assigned by the pass-through entity for the federal awards received as a sub recipient.Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.NOTE 3 INDIRECT COSTSThe Municipality elected not use the 10% de minimis cost rate, and did not charge indirect cost to federalgrants during the year ended June 30, 2022.NOTE 4 RELATIONSHIP TO FEDERAL FINANCIAL REPORTSAmounts reported in the accompanying Schedule are included in the Head Start, Coronavirus Relief, ARPAand in the Other Governmenta l Funds in the Municipalitys fund financial statements. The reconciliation between the expenditures in the fund financial statements and expenditures in the Schedule of Expendituresof Federal Awards is as follows:NOTE 5 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027)On March 11, 2021, was signed into law the American Rescue Plan Act (ARPA) of 2021, the latest COVID-19 stimulus package. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provides $350billion for states, municipalities, counties, tribes, and territories, including $130.2 billion for local governmentssplit evenly between municipalities and counties. Accordingly, the Municipality received a grant underCo De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.