Notes to SEFA
Title: Reporting Entity
Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projectsfunds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and capital projectsfunds. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore,some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of Citysbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The financial reporting entity consists of the primary government, City of Gilroy (the City), organizations for whichthe primary government is financially accountable, and other organizations for which the nature and significance oftheir relationship with the primary government are such that exclusion would cause the reporting entitys financialstatements to be misleading or incomplete.The City Council acts as the governing body and is able to impose its will on the following organization, establishingfinancial accountability:? Gilroy Public Facilities Financing Authority
Title: Schedule of Expenditures of Federal Awards
Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projectsfunds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and capital projectsfunds. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore,some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of Citysbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federalfinancial assistance received directly from federal agencies, as well as federal financial assistance passed through theState of California, is included in the Schedule. The Schedule was prepared only from the accounts of various grantprograms and, therefore, does not present the financial position or results of operations of the City.
Title: Subrecipients
Accounting Policies: Funds received under the various grant programs have been recorded within the special revenue and capital projectsfunds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and capital projectsfunds. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore,some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of Citysbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During the year ended June 30, 2022, the City provided federal funds to the following subrecipients:Assistance AmountListing Provided toNumber(s) Program Name / Subrecipient Names Subrecipients14.218 Community Development Block Grants / Entitlement GrantsRebuilding Together Silicon Valley $ 140,000Health trust Meals on Wheels 8,643Live Oak Adult Day Services 8,560Bay Area Community Health 10,216Total Community Development Block Grants / Entitlement Grants 167,419Total Amount Provided to Subrecipients $ 167,419