Audit 35330

Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof the City of Ames, Iowa, (City) under programs of the federal government for the year ended June 30, 2022.The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal RegulationsPart 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 notintended to and does not present the financial position, changes in net position or fund balance, or cash flows ofthe City. Expenditures reported in the schedule are reported on the modified accrual basis of accounting when theybecome a demand on current available financial resources in the governmental fund types and on the fullaccrual basis of accounting when expenditures are incurred in the proprietary fund types. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The City received federal awards bothdirectly from federal agencies and indirectly through pass-through entities. Federal financial assistance providedto a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance provided to subrecipients during the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.