Notes to SEFA
Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal award activity of Lake Havasu City, Arizona under programs of the federal
government for the year ended June 30, 2023. The information in this Schedule is
presented in accordance with the requirements of 2 CFR 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 Lake Havasu City, Arizona.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal award activity of Lake Havasu City, Arizona under programs of the federal
government for the year ended June 30, 2023. The information in this Schedule is
presented in accordance with the requirements of 2 CFR 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 Lake Havasu City, Arizona.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal award activity of Lake Havasu City, Arizona under programs of the federal
government for the year ended June 30, 2023. The information in this Schedule is
presented in accordance with the requirements of 2 CFR 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 Lake Havasu City, Arizona.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance for all awards. Under these principles, certain types of expenditures are
not allowable or are limited as to reimbursement. Negative amounts shown on the
Schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years.
Lake Havasu City, Arizona has not elected to use the 10% de minimis indirect cost rate as
allowed under the Uniform Guidance.