Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of
Federal Awards
Accounting Policies: Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The financial reporting entity, as defined by Governmental Accounting Standard Board (GASB),
consists of the primary government, which is the City of Stanton, California (City), entities for
which the primary government is financially accountable, and other entities for which the nature
and significance of their relationship with the primary government are such that exclusion would
cause the reporting entity’s financial statements to be misleading or incomplete.
The City Council acts as the governing body and is able to impose its will on the following
entities by establishing financial accountability:
Housing Authority of City of Stanton
Title: Scope of Presentation
Accounting Policies: Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule presents only the expenditures incurred by the City of
Stanton (City) that are reimbursable under federal programs of federal agencies
providing financial assistance. For purposes of this schedule, financial assistance
includes both federal financial assistance received directly from a federal agency and
expended, as well as federal funds received indirectly by City of Stanton from a nonfederal
agency and expended. Only the portion of program expenditures reimbursable
with such federal funds are reported in the accompanying schedule. Program expenses
in excess of the maximum federal reimbursement authorized or the portion of program
expenses that were funded with state, local or other non-federal funds are excluded from
the accompanying schedule.
Title: Basis of Accounting
Accounting Policies: Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
Title: De Minimus Indirect Cost Rate
Accounting Policies: Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The City elected to use the 10% de minimus indirect cost rate for the year ended June
30, 2023, however, no indirect cost rates were charged to any federal programs.
Title: Subrecipients
Accounting Policies: Funds received under the various grant programs have been recorded within the general
fund and special revenue funds of the City. The City utilizes the modified accrual basis of
accounting for governmental funds. The accompanying schedule of expenditures of
federal awards is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Office of Management and Budget Uniform
Grant Guidance).
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The following payments were made to subrecipients for the year ended June 30, 2023:
Assistance Listing #16.738
Hope Center of Orange County $1,036,330