Audit 20290

Accounting Policies: (a)Scope of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes only the expenditures incurred (and related awards received) by the City of Oxnard Housing Authority (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance for the year ended June 30, 2022.The information in this Schedule is presented in accordance with the requirements of the U.S. Code of Federal Regulations, Title 2, Grants and Agreements, 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 Authority, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Authority. TheAuthority did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.(b)Basis of Accounting The expenditures included in the accompanying schedule were reported on a regulatory basis of accounting in accordance with the U.S. Department of Housing and Urban Development (HUD). Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program.(c)Subrecipients During the fiscal year ended June 30, 2022, the Authority disbursed no federal funds to subrecipients.(d)2004 Capital Fund Revenue Bonds On April 26, 2004, the Affordable Housing Agency issued Affordable Housing Agency Certificates of Participation, Series 2004 (Oxnard-Santa Clara Projects) in the amount of $10,370,000, evidencing a proportionate ownership interest in debt service payments to be made with respect to certain Capital Fund Revenue Bonds, Series2004, issued by the Oxnard and Santa Clara Housing Authorities in the amounts of $5,820,000 and $4,550,000, respectively.Principal is payable annually on April 1. Interest is payable semiannually on April 1 and October 1 commencing October 1, 2004. The required reserve for the bonds of $451,375 was fully funded as of June 30, 2022. The amount of bonds outstanding asof June 30, 2022 was $840,000. HUD has approved the issuance of the bonds and the certificates and has authorizedthe Authority to pledge and assign its Capital Fund Program monies to the payment of the bonds and, therefore, the certificates. During the year ended June 30, 2022, there were payments made on the bonds for principal and interest totaling the amount of$390,000, and, accordingly, those expenditures relating to the bonds have been included in the federal expenditures of capital fund grants in the accompanying Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.