Audit 52477

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Lawrence, Kansas (the City) for the year ended December 31, 2022. The schedule of expenditures of federal awards does not include the federal grant activity of the Lawrence-Douglas County Housing Authority, the Lawrence Memorial Hospital, the Lawrence Memorial Hospital Endowment Association, the Lawrence Surgery Center, LLC or the Lawrence Public Library, discretely presented component units of the City, or eXplore Lawrence, a blended component unit of the City. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies expended during the year, are included in the schedule. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The accompanying schedule of federal awards is presented on the accrual basis of accounting in the proprietary funds and the modified accrual basis of accounting in the governmental funds. Expenditures of federal awards are recognized in the accounting period in which the liability is incurred. Such expenditures are reported following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.