Audit 35398

Title: Loan/loan guarantee outstanding balances Accounting Policies: This accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of City of Milroy, Minnesota under programs of the federal government for the year ended June 30, 2022. The information in this schedule 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 City of Milroy, Minnesota, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of City of Milroy, Minnesota. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: City of Milroy, Minnesota has not elected to use the 10% de minimis cost rate, as allowed under Uniform Guidance COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 2313000.