Audit 296595

Title: Scope of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the city of Encinitas 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"). Because the Schedule presents only a selected portion of the operations of the City of Encinitas, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Encinitas. The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. 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 grant activity of the City of Encinitas 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”). Because the Schedule presents only a selected portion of the operations of the City of Encinitas, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Encinitas. The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.

Title: Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the city of Encinitas 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"). Because the Schedule presents only a selected portion of the operations of the City of Encinitas, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Encinitas. The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. 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 accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Subreceipient Expenditures Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the city of Encinitas 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"). Because the Schedule presents only a selected portion of the operations of the City of Encinitas, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Encinitas. The City did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Payments to subrecipients totaled $248,944 for the Community Development Block Grant for the fiscal year ended June 30, 2023.