Audit 46615

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of the City of Burton, Michigan (the City) under programs of the federal government for theyear ended June 30, 2022. The information in the Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because theSchedule presents only a selected portion of the operations of the City, it is not intended to and does notpresent the financial position, changes in net position, or cash flows of the City. Expenditures reported in the Schedule are reported on the same basis of accounting as the basicfinancial statements, except for ALN 66.458, Capitalization Grants for Clean Water State RevolvingFund (CWSRF). The CWSRF expenditures are reported on cash basis per guidance rom teh pass-through entity. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. The pass-through entity identifying numbers are presented where available. The City has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs asallowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.