Audit 363568

Title: Matching Costs Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the City's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 3 Indirect Cost Rate Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimus cost rate allowed under Uniform Guidance. Matching costs, i.e., the City's share of certain program costs, are not included in the reported expenditures.

Title: Expenditures of Federal Revenue Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the City's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 3 Indirect Cost Rate Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimus cost rate allowed under Uniform Guidance. The City operates revolving loan programs utilizing federal financial assistance received under current and prior Community Development Block Grants and Home Investment Partnership Programs. Loans outstanding at December 31, 2021 under these programs, reported as part of loans receivable in the City's basic financial statements, are as follows: Loans Receivable $4,479,469 New loans in the amount of $380,866 were disbursed and loan principal repayments totaling $193,491 were made during the year from economic development loans. Program income of $208,508 consisted of principal and interest payments.