Notes to SEFA
Accounting Policies: NOTE ABASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activityof the City under programs of the federal government for the year ended June 30, 2022. The information inthis SEFA 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 FederalAwards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of City,it is not intended to and does not present the financial position, changes in net assets, or cash flows of theCity.NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFA are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. The expenditures are recorded uponthe disbursement of funds that meet federal award requirements.NOTE C - INDIRECT COST RATEThe City does not have an indirect cost rate and had no indirect costs charged to the federal grants duringthe year ended June 30, 2022. The City has elected not to use the 10 percent de minimis indirect cost rateallowed under the Uniform Guidance.NOTE DSUBRECIPIENTSDuring the year ended June 30, 2022, the City did not provide federal awards to subrecipients.NOTE E - SUBSEQUENT EVENTSManagement has evaluated subsequent events through January 11, 2023, the date on which the report onschedule of expenditures of federal awards required by the uniform guidance were available to be issued.No items of significance were determined.5
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.