Audit 54687

Accounting Policies: 1.REPORTING ENTITYThe financial reporting entity, as defined by the Governmental Accounting Standards Board (GASB) Codification, consists of (a) the primary government, City of Arcadia (City), and (b) component units which include organizations for which the primary government is financially accountable, and other organizations for which the primary government is not accountable, but 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. 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of AccountingFunds received under the various grant programs have been recorded within general, special revenue, and capital projects funds of the City. The City utilizes the modified accrual method of accounting for the general, special revenue, and capital projects funds. The accompanying Schedule of Expenditures of Federal Awards (Schedule) has been prepared accordingly. 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 County of Los Angeles, California are also included in the schedule. The schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.For the fiscal year ended June 30, 2022, the City did not have payments passed through to other agencies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.