Audit 331058

Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal award programs of the Economic Development Corporation of the City of Detroit (the “EDC”). Federal awards received directly from federal agencies, as well as federal awards passed through other agencies, are included on this schedule. Basis of Presentation The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because this schedule presents only a selected portion of the EDC’s operations, it is not intended to, and does not, present the financial position or changes in financial position of the EDC. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting, which is the basis of accounting used to prepare the EDC’s government-wide financial statements. There were no differences between the expenditures presented in the accompanying schedule of expenditures of federal awards and the expenditures incurred under these programs using the modified accrual basis of accounting, which is the basis of accounting used to prepare the EDC’s fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, in which certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate.