Title: Note 1 – Reporting Entity
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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 of Pacific Grove, California (the “City”) is primarily a residential community located at the tip of the
Monterey Peninsula on the Central California coast. The community was incorporated as a city on July 16, 1889. It
was granted a charter by the State on April 22, 1927. The City operates under a council-manager form of government.
The seven-member City Council appoints a City Manager, who is the administrative head of the municipal
government. City amenities include a library, natural history museum, a community center, a youth center, a senior
center, a golf course, a cemetery, sewer services, a monarch butterfly sanctuary and habitat preserve and general
administration services. The City Council acts as the governing board. In addition, City staff perform all
administrative and accounting functions for these entities and these entities provide their services entirely to the City.
Blended component units, although legally separate entities are, in substance, part of the City's operations and data
from these units are combined with data of the City. The City had no component units as of June 30, 2023.
Title: Note 2 – Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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 of expenditures of federal awards (the “Schedule”) includes the federal grant activity of
the City 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 the Office of Management and Budget Title 2 U.S. Code of
Federal Regulations (CFR) 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 and some amounts in this schedule may differ from amounts presented in the City’s financial
statements.
Title: Note 3 – Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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 are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
Title: Note 4 – Indirect Cost Rate
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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 did not provide funding to subrecipients during the year ended June 30, 2023.
Title: Note 6 – Contingencies
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years. Pass-through entity identifying numbers are presented where available.
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.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain
costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to
a request for reimbursement to the grantor agencies.