Audit 347771

Title: GENERAL Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs. The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of the federal award programs of the City of Pleasant Hill, California (the City). The City’s reporting entity is defined in Note 1 to its basic financial statements. The SEFA includes all federal awards received directly from federal agencies and federal awards passed through from other governmental agencies.

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs. The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements.

Title: RELATIONSHIP TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs. Expenditures of federal awards are reported in the City’s basic financial statements as expenditures in the governmental funds. Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.

Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs. Amounts reported in the SEFA agree to or can be reconciled with the amounts reported in the related federal financial reports.

Title: INDIRECT COSTS Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting for program expenditures accounted for in the governmental funds as described in Note 1 to the City’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs. The City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs.