Audit 24645

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal and state awards (SEFSA) presents the activity of all federal, state, and other financial assistance programs of the City and its component unit. The information in the SEFSA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the SEFSA may differ from amounts presented in, or used in the preparation of, the basic financial statements.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFSA are reported on the modified accrual basis of accounting. These expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFSA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.3.INDIRECT COST RATEThe City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.4.SUBRECIPIENTSFederal awards provided to subrecipients are treated as expenditures when paid to the subrecipients. Of the expenditures presented in the SEFSA, the City provided federal awards to subrecipients as follows: Grantor/Program Title - Community Development Block Grant, AL Number - 14.218, Expenditures - $834,963 5. DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED) During the emergency period of COVID-19, federal agencies and recipients of federal assistance funds donated personal protective equipment (PPE) to non-federal entities. In connection with that donation, the recipient must disclose the estimated value of the donated PPE, but such amounts are not included in the SEFSA. The City did not receive any PPE donations funded by federal assistance funds during the reporting year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.