Audit 21958

Title: Loan/loan guarantee outstanding balances Accounting Policies: a.Reporting EntityThe financial reporting entity, as defined by the Governmental Accounting Standard Board (GASB), consists of the primary government, which is the City of Vacaville, California (City), organization for which the primary government is financially accountable, and other organizations 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.The City Council acts as the governing body and is able to impose its will on the following organizations by establishing financial accountability:?Vacaville Housing Authority?Vacaville Public Financing Authorityb.Scope of PresentationThe accompanying schedule presents only the expenditures incurred by the City of Vacaville, California, that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.c.Basis of AccountingThe expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 7451384.