Notes to SEFA
Accounting Policies: Note 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (schedule) includes the federal grantactivity of the City under programs of the federal government for the year ended June 30, 2022. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selectedportion of the operations of the City, it is not intended to and does not present the financial position,changes in net position or cash flows of the entity.Note 2. Summary of Significant Accounting PoliciesExpenditures reported on the schedule are reported on the modified accrual basis of accounting forgovernmental funds and accrual basis of accounting for proprietary funds. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown on theschedule represent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. Expenditures of federal awards are recognized in the accounting period whenthe liability is incurred and has met the eligibility criteria of the federal grant.Revenue from federal awards is recognized when the City has done everything necessary to establish itsright to the revenue. In the governmental funds, revenue from federal grants is recognized when therevenue is both measurable and available. In proprietary funds, revenue from federal grants isrecognized when it is earned.Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.