Notes to SEFA
Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule)presents the activity of all federal award programs of the City of Simi Valley, California(City). For purposes of this Schedule, financial awards include federal awards receiveddirectly from a federal agency, as well as federal funds received indirectly by the Cityfrom a non-federal agency or other organization. Only the portions of programexpenditures reimbursable with federal funds are reported in the accompanyingSchedule. Program expenditures in excess of the maximum reimbursementauthorized, if any, or the portion of the program expenditures that were funded withother state, local or other non-federal funds are excluded from the accompanyingSchedule.The information in the SEFA is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the SEFA presents only a selected portion of the operations of the City, it isnot intended to and does not present the financial position, changes in net position, orcash flows of the City.Basis of AccountingThe expenditures included in the accompanying Schedule were reported on themodified accrual basis of accounting, which is defined in Note 1 to the City's basicfinancial statements. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Expenditures reported include anyproperty or equipment acquisitions incurred under the federal programs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.