Audit 294891

Title: Subrecipients Accounting Policies: Note 2 – Basis of Accounting Funds received under the various grant programs have been recorded within the special revenue and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue and capital projects funds. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2, Uniform Administrative Requirements, 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 City’s basic financial statements. Note 3 – Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California, is included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under Uniform Guidance. During the year ended June 30, 2022, the City provided federal fund 14.218 Community Development Block Grants / Entitlement Grants to the following subrecipients: Boys and Girls Club $85,000; Live Oak Adult Day Care Services $10,000; Small Business Grants (Various) $90,000; Rebuilding Together $140,000; Ryse Up Program (CARAS) $8,500.