Title: Note 1 – Reporting Entity
Accounting Policies: 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
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, the City of National City (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.
The City Council acts as the governing body and is able to impose its will on the following organizations,
establishing financial accountability:
The National City Joint Powers Financing Authority
The Parking Authority of the City of National City
Title: Note 2 – Basis of Accounting
Accounting Policies: 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
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.
Expenditures reported on the Schedule of Expenditures of Federal Awards (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. Negative
amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of
business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may
differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
Title: Note 3 – Schedule of Expenditures of Federal Awards
Accounting Policies: 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
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 includes the federal award activity of the City under programs of the federal government
for the year ended June 30, 2023. Federal financial assistance received directly from federal agencies, as well as
federal financial assistance passed through the State of California and the County of San Diego is included in the
Schedule. 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, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Title: Note 4 – Indirect Cost Rate
Accounting Policies: 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
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: Note 5 – Subrecipients
Accounting Policies: 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, preparation of the City’s basic financial statements.
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, the City passed $807,379 of federal awards through to subrecipients.