Audit 44202

Accounting Policies: NOTE 1The accompanying schedule of expenditures of federal awards presents the activities of the federal awards (the Schedule) programs expended by the City of Owatonna. The Citys reporting entity is defined in Note 1 to the financial statements. 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, it is not intended to and does not present the financial position or changes in net position of the City. The Schedule does not include the operations of the Owatonna Public Utilities Commission.NOTE 2The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basic financial statements of the City. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.NOTE 3N/A The pass-through entity identifying number is unknown or doesnt have one because of direct funding. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.