Audit 50936

Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Lake Havasu City, Arizona under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of theCity, it is not intended to and does not present the financial position, changes in netposition, or cash flows of Lake Havasu City, Arizona.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance for all awards. Under these principles, certain types of expenditures arenot allowable or are limited as to reimbursement. Negative amounts shown on theSchedule represent adjustments or credits made in the normal course of business toamounts reported as expenditures in prior years.Lake Havasu City, Arizona has not elected to use the 10-percent de minimis indirect costrate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.