Audit 53952

Accounting Policies: Note 1 Reporting Entity The financial reporting entity, as defined by the Governmental Accounting Standard Board (GASB), consists of the primary government, which is the City of Lodi, California (the City), 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. Note 2 Basis of Accounting Funds received under the various grant programs have been recorded within the governmental and proprietary fund types of the City. The City utilizes the modified accrual method of accounting for the governmental fund types and the full accrual method of accounting for the proprietary fund types. The accompanying Schedule of Expenditures of Federal Awards (Schedule) 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 preparation of the Citys basic financial statements. Note 3 Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California and the U.S. Department of Transportation are included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position orchange in net position / fund balances of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.