Audit 36570

Title: Note A--Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The basic financial statements of the Government are presented on the modified accrual basis of accounting for the governmental fund financial statements and the accrual basis of accounting for the government-wide, proprietary fund, and fiduciary fund financial statements. Thus, amounts reported on the Schedule may not directly agree to the amounts reported in the basic financial statements.The accompanying Schedule reflects certain adjustments resulting from transfers of funds between grants, adjustments, or credits made in the normal course of business. As a result, certain grants reflect negative expenditures.Federal Assistance Listing numbers or other identifying numbers listed on the Schedule were obtained from the respective grant/contract agreement. De Minimis Rate Used: N Rate Explanation: The Government has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity for Lexington-Fayette Urban County Government (the Government) 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 of the Government, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Government.Federal program funds can be received directly from the federal government or passed through from another entity. Uniform Guidance Part 200, Subpart A defines a recipient as a non-federal entity that expends federal awards received directly from a federal awarding agency to carry out a federal program and a pass-through entity as a non-federal entity that provides a federal award to a sub-recipient to carry out a federal program. Amounts in the column titled Federal Expenditures represent amounts expended related to programs managed by the Government. Amounts in the column titled Passed Through to Subrecipient Expenditures represent amounts expended by subrecipients. Such amounts are not included in the Federal Expenditures column.