Audit 302311

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Generally Accepted Accounting Principles with accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the 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. The Fund has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards include the federal grant activity of City of Beebe American Rescue Plan Fund (the “Fund”) under programs of the federal government for the year ended December 31, 2022. 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 Fund, it is not intended to and does not present the net position, changes in net position or cash flows of the Fund.