Audit 36898

Accounting Policies: The accounting policies and presentation of the Single Audit Report of the City of Sarasota, Floridahave been designed to conform to generally accepted accounting principles as applicable togovernmental units, including the reporting and compliance requirements of the Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance) (federal awards), and Chapter 10.550, Rules ofthe Auditor General of the State of Florida.A. Reporting Entity - The Audits of States, Local Governments, and Non-Profit Organizations andthe Uniform Guidance set forth the audit and reporting requirements for federal awards, Chapter69 I-5 sets forth the requirements for state financial assistance. The City of Sarasota includedschedules of both federal and state financial assistance in the Single Audit section. Financialassistance received directly from the State of Florida is included to satisfy the audit requirementsof the State of Florida grantor agencies.B. Basis of Accounting - Basis of accounting refers to when revenues and expenditures orexpenses are recognized in the accounts and reported in the financial statements. Basis ofaccounting relates to the timing of the measurements made, regardless of the measurementfocus applied.The modified accrual basis of accounting is followed in the Schedule of Expenditures of FederalAwards and State Financial Assistance. Under the modified accrual basis of accounting,revenues are recognized in the accounting period in which they become both measurable andavailable to finance expenditures of the current period. Available means collectible within thecurrent period or soon enough thereafter to be used to pay liabilities of the current period.Expenditures are recorded when the related liability is incurred. In applying thesusceptible-to-accrual concept to intergovernmental revenues, the legal and contractualrequirements of the numerous individual programs are used as guidance. In some financialassistance programs where monies must be expended on the specific purpose or project beforeany amounts will be paid to the City of Sarasota, revenues are recognized based upon theexpenditures recorded. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.