Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on accounting principles generallyaccepted in the United States of America (accrual basis). Such expenditures arerecognized following the cost principles contained in the Unifonn Guidance and/or 0MBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments whereincertain types of expenditures are not allowable or are limited as to reimbursement.
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) includesthe federal activity of the City of Lexington, Missouri, under programs of the federalgovernment for the year ended March 31, 2022. The infonnation in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Unifonn Guidance). Because the Schedule presentsonly a selected portion of the operations of the City of Lexington, Missouri, it is notintended to and does not present the financial position, changes in net position, or cashflows of the City of Lexington, Missouri.