Audit 329108

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Mason under programs of the federal government for the year ended June 30, 2024. 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 of Mason, it is not intended to and does not present the financial position or fund balance, changes in net positions or fund balances, or cash flows of the City of Mason.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 3 - Reconciliation to the Financial Statements Accounting Policies: Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The following is a reconciliation between the financial statements and the Schedule of Expenditures of Federal Awards: See the Notes to the SEFA for chart/table

Title: Note 4 - Subrecipients Accounting Policies: Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance No amounts were provided to subrecipients.

Title: Note 5 - Construction Commitment Accounting Policies: Expenditures 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 certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City of Mason has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance At June 30, 2024 the City of Mason had an uncompleted construction contract. The entire contract totaled $36,034,770 and the remaining commitment was $22,745,373. It is expected that a portion of this contract will be paid with federal awards.