Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are not allowable or are not limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, ie., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred.
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 (the Schedule) includes the federal award activity of the City of Highland Park under programs of the federal government for the year ended December 31, 2022. The information in this 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). Because the schedule presents only a selected portion of the operations of the City of Highland Park, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Highland Park. The reporting entity for the City of Highland Park is based upon criteria established by the Governmental Accounting Standards Board. The City of Highland Park is the primary government according to GASB criteria, while the Housing Park Housing Association is a component unit. Federal awards received directly by the Highland Park Housing Association are not included in this report since the Highland Park Housing Association has been audited by other auditors for their grants and those amounts are reported in a separate report.