Title: 1 - Reporting Entity
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The City of Santa Cruz (the "City") was incorporated as a town in 1866 under the laws of the State of California. It became a City in 1876. The City is a charter city administered under a council/manager form of government.
The financial statements present the City and its component units (legally separate entities for which the City is considered to be financially accountable). Component units include those entities for which the City may have governing authority or is in a relationship of financial benefit or burden. Component units also include entities that are fiscally dependent upon the City. The financial activities of these entities are integrally related to those of the City and, therefore, blended with those of the City. Blending involves combining component unit data with City data in the Government- Wide Financial Statements.
Based on the above criteria, the accompanying financial statements include the financial activities of the following entities as blended component units:
Santa Cruz Public Improvement Financing Corporation – The Santa Cruz Public Improvement Financing Corporation (“Corporation”) is a non-profit benefit corporation organized and operated under the laws of the State of California. The primary purpose of the Corporation is to serve as a financing vehicle for the City. The City Council is responsible for the operations of the Corporation. Separate financial statements are not prepared for the Corporation.
City of Santa Cruz Public Financing Authority – The City of Santa Cruz Public Financing Authority (“Authority”) is a Joint Powers Authority formed February 14, 2006, between the former Redevelopment Agency and the City for the purpose of creating a public agency which could provide financial assistance to the former Redevelopment Agency and the City in connection with the construction of public capital improvements. Separate financial statements are not prepared for the Authority.
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, deferred inflows/outflows of resources, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Title: 2 - Basis of Presentation
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect 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 under programs of the federal government for the year ended June 30, 2024. Federal awards received directly from federal agencies and received through other governmental agencies are included on the schedule of expenditures of federal awards. The grant period may be different from City's fiscal year, which is from July 1 through June 30. The information 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, it is not intended to and does not present the financial position, changes in net position, or fund balances of the City.
Title: 3 - SSAP
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: 4 - Subrecipients
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The City did not provide any amounts to subrecipients during the fiscal year ended June 30, 2024.
Title: 5 - Indirect Cost Rate
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: 6 - Contingencies
Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting except for programs reported in the City’s enterprise funds, which are presented using the accrual basis of accounting, which is described in Note 1 to the City’s basic financial statements. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.