Title: 1 - Reporting Entity
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The financial reporting entity consists of the primary government, the Town of Danville, California (the “Town”),
organizations for which the primary government is financially accountable, and other organizations 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 Town Council acts as the governing body for, Town staff perform all administrative and accounting functions for,
and is the Town is able to impose its will on, the following organizations, establishing financial accountability.
The Town of Danville Financing Authority
Title: 2 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity
of the Town 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 Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform
Guidance”). Federal financial assistance received directly from federal agencies, as well as federal financial assistance
passed through the State of California and the County of San Diego 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 Town.
Title: 3 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
Title: 4 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: 5 - Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The Town did not provide funding to subrecipients during the year ended June 30, 2023.
Title: 6 - Contingencies
Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain
costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to
a request for reimbursement to the grantor agencies.