Notes to SEFA
Accounting Policies: Basis of Presentation: The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting. Measurement Focus: The determination of when an award is expended is based on when the activity related to the award occurred. Program Type Determination: Type A programs are defined as federal programs with federal expenditures exceeding the larger of $750,000 or 3% of total federal expenditures. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection: The risk-based approach was used in the selection of federal programs to be tested as major programs. The City did not qualify as a low-risk auditee for the fiscal year ended June 30, 2022. Subrecipients: The City did not pass through any funds to subrecipients during the fiscal year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.