Audit 51825

Accounting Policies: (1) Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule)includes the federal awards activity of the City of Live Oak (the City) underfederal programs of the federal government for the year ended June 30, 2022.The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Since the Schedule presents only aselected portion of the City, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of the City.(2) Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the modified accrualbasis of accounting. Under the modified accrual basis of accounting,expenditures are incurred when the City becomes obligated for payment as aresult of the receipt of the related goods and services. Expenditures reportedinclude any property or equipment acquisitions incurred under the federalprogram. The City did not elect to use the 10% de minimis indirect cost rateallowed under the Uniform Guidance.(3) Loans with Continuing Compliance RequirementsThe City participates in certain federal award programs that sponsor revolvingloan programs, which are administered by the City. These programs requireservicing arrangements with the City. The funds are returned to the programsupon repayment of the principal and interest. In accordance with Section 200.510of the Uniform Guidance, the City has reported the outstanding balance of loansfrom previous years that have significant continuing compliance requirements asof June 30, 2022, along with the value of total outstanding and new loans madeduring the current year.The programs listed below had the following aggregate, federally funded loansoutstanding at June 30, 2022:AssitanceListing NumberOutstanding atJune 30, 202214.239 $ 9,229,436 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.