Audit 40550

Accounting Policies: 1. GENERALThe Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all applicable federal award programs of the City of Alton, Texas (the City) for the year ended September 30, 2022. The Citys reporting entity is defined in Note 1 of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the Schedule.2. BASIS OF ACCOUNTING AND PRESENTATIONThe Schedule is presented using the modified accrual basis of accounting. The Citys significant accounting policies, including the modified accrual basis of accounting, are presented in Note 1 of the basic financial statements. The 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 of the amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.3. PASS-THROUGH EXPENDITURESNone of the federal programs expended by the City were provided to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.