Notes to SEFA
The City of San Mateo (the “City”) was incorporated on September 4, 1894, under the laws of the State of California and enjoys all the rights and privileges applicable to a Charter City. The City operates under the Council-Manager form of government. The financial reporting entity consists of the City, the primary government, and its component unit. The component unit discussed below is included in the reporting entity because of their operational or financial relationships with the City. • San Mateo Joint Power Public Financing Authority Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Separate financial statements for the San Mateo Joint Power Financing Authority are not available.
Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California, San Mateo County, and the Association of Governments of San Mateo is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
The City has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.