Audit 5231

Title: NOTE 1 – REPORTING ENTITY Accounting Policies: A. Basis of Accounting Funds received under the various grant programs have been recorded within various funds of the County. The County utilizes the modified accrual basis of accounting for these funds. The accompanying Schedule of Expenditures of Federal Awards (the SEFA) 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the presentation of County's basic financial statements. B. Schedule of Expenditures of Federal Awards The accompanying SEFA presents the activity of all federal financial assistance programs of the County. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other agencies is included in the SEFA. The SEFA was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the County. When the County receives federal awards as a sub-recipient, the pass-through agency generally provides the County with a pass-through number that will be referenced on the SEFA. If the pass-through agency does not generate or provide such a number, the County will denote “N/A” on the SEFA in the absence of a passthrough number. De Minimis Rate Used: N Rate Explanation: C. Indirect Cost Rate The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The financial reporting entity, as defined by the Government Accounting Standards Board (GASB), consists of the primary government, which is the County of Lassen, California (the County), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. A. Basis of Accounting Funds received under the various grant programs have been recorded within various funds of the County. The County utilizes the modified accrual basis of accounting for these funds. The accompanying Schedule of Expenditures of Federal Awards (the SEFA) 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the presentation of County's basic financial statements. B. Schedule of Expenditures of Federal Awards The accompanying SEFA presents the activity of all federal financial assistance programs of the County. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other agencies is included in the SEFA. The SEFA was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the County. When the County receives federal awards as a sub-recipient, the pass-through agency generally provides the County with a pass-through number that will be referenced on the SEFA. If the pass-through agency does not generate or provide such a number, the County will denote “N/A” on the SEFA in the absence of a passthrough number. C. Indirect Cost Rate The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.