Audit 298343

Title: BASIS OF PRESENTATION Accounting Policies: CASH BASIS, AND 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: ALL COSTS WERE DIRECT, THERE WERE NO INDIRECT COSTS THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SCHEDULE) INCLUDES THE FEDERAL AWARD ACTIVITY OF THE CITY OF BRIGHTON 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 BRIGHTON, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN FINANCIAL POSITION OR CASH FLOWS OF THE CITY OF BRIGHTON.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: CASH BASIS, AND 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: ALL COSTS WERE DIRECT, THERE WERE NO INDIRECT COSTS EXPENDITURES REPORTED IN THE SCHEDULE ARE REPORTED ON THE BASIS OF CASH RECEIPTS AND DISBURSEMENTS, WHICH IS A BASIS OF ACCOUNTING OTHER THAN U.S. GENERALL ACCEPTED ACCOUNTING PRINCIPLES. 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: USDA LOAN Accounting Policies: CASH BASIS, AND 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: ALL COSTS WERE DIRECT, THERE WERE NO INDIRECT COSTS PROGRAM EXPENDITURES FOR THE USDA PROGRAM INCLUDE THE JULY 1, 2022 BALANCE OF THE USDA LOAN IN THE AMOUNT OF $2,484,000. THE BALANCE OF THE LOAN AS OF JUNE 30, 2023 WAS $2,437,908

Title: INDIRECT COST RATE Accounting Policies: CASH BASIS, AND 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: ALL COSTS WERE DIRECT, THERE WERE NO INDIRECT COSTS THE CITY OF BRIGHTON HAS NOT ELECTED TO USE THE 10% DE MINIMUM INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE.