Audit 33096

Accounting Policies: (1)Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal AwardsThe financial reporting entity, as defined by Governmental Accounting Standard Board (GASB), consists of the primary government, which is the City of Hawaiian Gardens, California (City), entities for which the primary government is financially accountable, and other entities for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entitys 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 entities by establishing financial accountability:?Hawaiian Gardens Public Financing Authority?Housing Authority of the City of Hawaiian Gardens(a)Scope of PresentationThe accompanying schedule presents only the expenditures incurred by the City of Hawaiian Gardens (City) that are reimbursable under federal programs of federal agencies providing financial assistance. For purposes of this schedule, financial assistance includes both federal financial assistance received directly from a federal agency and expended, as well as federal funds received indirectly by City of Hawaiian Gardens from a non-federal agency and expended. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenses in excess of the maximum federal reimbursement authorized or the portion of program expenses that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. (b) Basis of Accounting Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual basis of accounting for governmental funds. The accompanying schedule of expenditures of federal awards 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 (Office of Management and Budget Uniform Grant Guidance).(c)De Minimus Indirect Cost RateThe City elected to use the 10% de minimus indirect cost rate for the year ended June 30, 2022, however, no indirect cost rates were charged to any federal programs.(d)SubrecipientsThere were no payments to subrecipients for the year ended June 30, 2022. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.