Audit 317963

Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Note A - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Cambridge, Minnesota for the year ended December 31, 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the presentation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Note C - Indirect Costs The City of Cambridge, Minnesota has not charged any indirect costs to any of the federal programs. Therefore, the election of the de minimus cost rate is not applicable. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Note D - Subrecipients Accounting Policies: Note A - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Cambridge, Minnesota for the year ended December 31, 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the presentation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Note C - Indirect Costs The City of Cambridge, Minnesota has not charged any indirect costs to any of the federal programs. Therefore, the election of the de minimus cost rate is not applicable. City of Cambridge, Minnesota did not pass any federal funds to subrecipients during 2023.