Audit 22400

Title: 3.AMOUNTS PROVIDED TO SUBRECIPIENTS Accounting Policies: 1.REPORTING ENTITYThe financial reporting entity consists of (a) the primary government, City of Eureka (City), and (b) component units which include 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 entity's financial statements to be misleading or incomplete. The component unit of the City is the Eureka Public Financing Authority.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of AccountingFunds received under the various grant programs have been recorded within the General, Special Revenue, Capital projects, and Enterprise funds of the City. The City utilizes the modified accrual method of accounting for the general, special revenue, and capital project funds, and the accrual method for the enterprise funds. Expenditures of Federal Awards, reported on the accompanying Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred. Schedule of Expenditures of Federal AwardsThe accompanying schedule presents the activity of all Federal financial assistance programs of the City, Federal financial assistance received directly from Federal agencies, as well as Federal financial assistance passed through the State of California.The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City as a whole. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the fiscal year ended June 30, 2022, the City did not have payments passed through to other agencies.