Audit 23862

Accounting Policies: A)Scope of PresentationThe accompanying schedule presents only the expenditures incurred (and related awards received) by the City of Yucaipa that are reimbursable under programs of federal agencies providing financial assistance. For the purpose of this schedule, financial assistance includes both federal financial assistance received directly from a federal agency, as well as federal funds received from pass-through entities by the City of Yucaipa. 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 the state, local or other non-federal funds are excluded from the accompanying schedule.B)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 of Yucaipa becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the federal program. The City elected to use the 10% de minimis cost rate as covered in Section 200.414 Indirect (F & A) costs.C)Major ProgramsThe City had one major program for the year ended June 30, 2022, consisting of the American Rescue Plan Act grant which had total disbursements of $3,710,247. This amount calculates to 63% of the total disbursements from federal awards.D)Subrecipient ExpendituresDuring the fiscal year ended June 30, 2022, the City of Yucaipa made $13,000 in payments to subrecipients, which consisted of $6,500 to the San Bernardino Sexual Assault Inc., and $6,500 to the Family Services Association. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.