Audit 19060

Title: CONTINGENCIES Accounting Policies: NOTE 1BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) include the federal award activities of the City of Signal Hill (the City), under programs of the federal government, as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. The information in the Schedule of Expenditures of Federal Awards (the 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, they are not intended to, and do not, present the financial statements of the City. The Citys reporting entity is defined in Note 1 of the notes to the Citys financial statements.NOTE 2BASIS OF ACCOUNTINGThe accompanying Schedule is presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of the notes to the Citys financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass through entity identifying numbers are identified where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.