Audit 19986

Accounting Policies: General - The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all federal and state award programs of the City of Harlingen, Texas, for the year ended September 30, 2022. The reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entitys financial statements to be misleading or incomplete. Basis of Presentation - The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of the City of Harlingen, Texas and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance and the State of Texas Single Audit Circular. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Federal Loans and Loan Guarantees - During the year ended September 30, 2022, the City had no outstanding loans payable or loan guarantees. Federally Funded Insurance - During the year ended September 30, 2022, the City had no federally funded insurance. Noncash Awards - During the year ended September 30, 2022, the City did not have any awards in the form of noncash assistance. Indirect Cost Rate - The Uniform Guidance allows an organization to elect a 10% de minimus indirect cost rate. For the year ended September 30, 2022, the City did not elect to use this rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.