Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and schedule of statefinancial assistance are reported on the modified accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Certain amounts shown on theschedule of expenditures of federal awards and schedule of state financial assistance representadjustments or credits made in the normal course of business to amounts reported as expenditures inprior years. The City has elected not to use the 10-percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards and schedule of state financialassistance include the award activity of the City under programs of the federal and state governments,respectively, for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the schedule of expenditures of federal awards and schedule of state financialassistance present only a selected portion of the operations of the City, they are not intended to and donot present the financial position, statement of activities, or cash flows of the City.