Title: Reporting Entity
Accounting Policies: Funds received under the various grant programs have been recorded within the general fund and special revenuefunds of the Town. The Town utilizes the modified accrual method of accounting for the general fund and specialrevenue funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the Townsbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The financial reporting entity consists of the primary government, the Town of Danville, California (the Town), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entitys financial statements to be misleading or incomplete.The Town Council acts as the governing body for, Town staff perform all administrative and accounting functions for, and is the Town is able to impose its will on, the following organizations, establishing financial accountability.? The Town of Danville Financing Authority
Title: Schedule of Expenditures of Federal Awards
Accounting Policies: Funds received under the various grant programs have been recorded within the general fund and special revenuefunds of the Town. The Town utilizes the modified accrual method of accounting for the general fund and specialrevenue funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the Townsbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal financial assistance programs of the Town. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California is included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the Town.
Title: Subrecipients
Accounting Policies: Funds received under the various grant programs have been recorded within the general fund and special revenuefunds of the Town. The Town utilizes the modified accrual method of accounting for the general fund and specialrevenue funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the Townsbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Town provided $900,000 to subrecipients for the year ended June 30, 2022.
Title: Contingencies
Accounting Policies: Funds received under the various grant programs have been recorded within the general fund and special revenuefunds of the Town. The Town utilizes the modified accrual method of accounting for the general fund and specialrevenue funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the Townsbasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.