Audit 306374

Title: Note 1 - Basis of Presentation Accounting Policies: 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 where in certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. There were no amounts passed through to other entities during the year. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10-percent de minimis indirect rate allowed by the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the "Schedule) includes the federal and state gram activity of the City of Zephyrhills, Florida, under programs of thr federal and state governments for the year ended Septemebr 30, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. code of Federal Regulations part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance) and the Rules of the Auditor General of the State of Florida. Because the Schedule presents only a selected portion of the operations of the City of Zephyrhills, it is not intended to and does not present the financial position, changes in net assets or cash flows of the City of Zephyrhills.