Audit 23418

Accounting Policies: NOTE 1 - REPORTING ENTITY The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the City of California City. The City of California Citys (the City) reporting entity is defined in Note 1 to the Citys basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. 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, it is not intended to and does not present the financial position, changes in net position or cash flows of the City. NOTE 2 BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is prepared using the modified accrual basis of accounting for program expenditures accounted for in governmental funds and the accrual basis of accounting for expenditures accounted for in proprietary funds, as described in Note 1 of the Citys basic financial statements. NOTE 3 RELATIONSHIP TO BASIC FINANCIAL STATEMENTS The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the Citys financial statements. Federal award revenues are reported principally in the Citys financial statements as intergovernmental revenues in the General and Special Revenue funds. NOTE 4 RELATIONSHIP TO FEDERAL FINANCIAL REPORTS The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, with the amounts reported in the related federal financial assistance reports. NOTE 5 INDIRECT COST RATE The City of California City did not elect to use the 10 percent de minimis indirect cost rate as described in 2 CFR ?200.414. Uniform Guidance, ?200.510(6), requires the City of California City to disclose whether or not it elected to use the 10 percent de minimis cost rate that ?200.414(f) allows for nonfederal entities that have never received a negotiated indirect cost rate.NOTE 6 PASS-THROUGH ENTITIES IDENTIFYING NUMBER When federal awards are received from a pass-through entity; the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When the City determined that no identifying number was assigned for the program or the City was unable to obtain an identifying number from the pass-through entity, the City indicated N/A as the pass-through identifying number. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.