Audit 47083

Title: Prior Year Expenditures Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance include the federal and state activities of the City of Lakeland, Florida. This schedule summarizes the expenditures incurred under all federal programs and state projects by the City of Lakeland, Florida for the fiscal year ended September 30, 2022. For purposes of this schedule, federal programs and state projects include all grants and contracts entered into directly between the City and agencies and departments of the federal and state government with expenditures during the fiscal year ended September 30, 2022. Federal programs and state projects passed through to other government agencies, if any, are also included in the schedule. Grant-related expenditures for the governmental fund types are presented using the modified accrual basis of accounting. Grant-related expenditures for the proprietary fund types are presented using the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 215.97, Florida Statutes, and Chapter 10.550,Rules of the State of Florida Auditor General. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City maintains separate grant-related accounts in the general ledger system. Individual grant revenue and expense accounts are assigned at the time the City is awarded a grant and it is approved by the City Commission. All grant revenues and eligible expenses are recorded in the individual accounts. The City's accounting policies relating to encumbrances, receivables, and designations of fund balance, and other financial matters are applied to the grant accounts. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agency as a result of an audit or any claim for reimbursement to the grantor agencies, the expenditures would become a liability of the City. All grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. There were no non-cash awards or Federal Insurance maintained in the current year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. NOTE C - PRIOR YEAR EXPENDITURESThe amounts reported on the SEFA for Community Development Block Grants (AL 14.218) as current year expenditures includes $8,455 of expenses incurred in prior fiscal years that were eligible grant expenditures.The amounts reported on the SEFA for Airport Improvement Program (AL 20.106) as current year expenditures includes $4,671 of expenses incurred in prior fiscal years that were eligible grant expenditures as a result of grant amendments in the current year.The amounts reported on the SEFA for Highway Planning and Construction (AL 20.205) as current year expenditures includes $54,136 of expenses incurred in prior fiscal years that were eligible grant expenditures as a result of grant amendments in the current year.The amounts reported on the SEFA for Disaster Grants - Public Assistance Presidentially Declared Disasters) (AL 97.036) as current year expenditures includes ($1,399) of expenses incurred in prior fiscal years that were ineligible grant expenditures.