Title: 1 - Reporting Entity
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 the Uniform Guidance.
The financial reporting entity consists of the primary government, City of Ridgecrest (the “City”), 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.
Title: 2 - Basis of Accounting
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 the Uniform Guidance.
The various grant programs have been recorded within the general fund and special revenue funds of the City. The
City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The
accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in
the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
Title: 3 - Schedule of Expenditures of Federal Awards
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 the Uniform Guidance.
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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or
results of operations of the City.
Title: 4 - Subrecipients
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 the Uniform Guidance.
During the fiscal year ended June 30, 2023, there were no amounts provided to subrecipients.
Title: 5 - Indirect Cost Rate
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 the Uniform Guidance.
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: 6 - Contingencies
Accounting Policies: 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 and County of Kern is included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, 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 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.