Notes to SEFA
Accounting Policies: 1. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalawards activity of the City of Menifee (the City) under federal programs of federal government forthe year ended June 30, 2022. The information in this SEFA is presented in accordance with Title2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFApresents only a selected portion of the operations of the City, it is not intended to and does notpresent the financial position, changes in net position or fund balance, or cash flows of the City.For the purposes of this schedule, federal financial assistance includes both federal financialassistance received directly from a federal agency, as well as federal funds received indirectly bythe City from a nonfederal agency or other organization. Only that portion of program expendituresreimbursable with such federal funds are reported in the accompanying schedule. Programexpenditures in excess of the maximum federal reimbursement authorized or the portion of theprogram expenditures that were funded with state, local or other non-federal funds are excludedfrom the accompanying schedule.2. Summary of Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the modified accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the SEFA, if any, represent adjustments or creditsmade in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.