Audit 43460

Accounting Policies: The Schedule of Expenditures of Federal Awards presented on page 139 (the Schedule) includes the federal grant activity of the City of St. Augustine for the fiscal year ended September 30, 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) therefore, some of the amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting.The City of St. Augustine has been impacted by hurricanes Matthew, Irma and Dorian. The City has requested and/or has been reimbursed for expenditures for Hurricane Matthew for the fiscal years ending September 30, 2017-2022; and for Hurricane Irma for the fiscal years ending September 30, 2018-2022 and for Hurricane Dorian for the fiscal years ending September 30, 2020-2022. These expenditures have been reported on the Schedule in accordance with Compliance Supplement( 2 CFR Part 200, Appendix XI) dated April 2017 for Department of Homeland Security, CFDA 97.036-DISASTER GRANTS - PUBLIC ASSSISTANCE (Presidentially Declared Disasters, section: IV. OTHER INFORMATION, Recording Expenditures on the Schedule of Expenditures of Federal Awards.On May 9, 2017 the City of St. Augustine entered into a loan agreement with the Florida Department of Environmental Protection to fund various water projects in the City funded by the U.S Department of Environmental Protection's Capitalization Grants for State Revolving Funds. The total funding amount available per agreement is $9,403,394 of which $8,208,099 has been expended. There were no reportable expenditures for this grant for the fiscal year ended September 30, 2022.On September 24, 2021 the City of St. Augustine entered into a grant agreement with the Florida Division of Emergency Management under the Coronavirus State and Local Fiscal Recovery Funds provisions of the American Rescue Pan Act. The City received funding of $7,720,659 or which $541,203 was expended during the fiscal year ending September 30, 2022. Funds may be used to cover costs related to; (1) Public Health and Economic Impacts, (2) Premium Pay for Essential workers, (3) Revenue Loss and (4) Investments in infrastructure. Funds may only be used to cover these expenses incurred by December 31, 2024. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.