Notes to SEFA
Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal awardactivity of the City of Holtville (City) under programs of the federal government for the fiscal year endedJune 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements 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 or resultsof the Citys operations.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of AccountingThe accompanying Schedule is presented using the modified accrual basis of accounting for governmentalfunds, which is described in Note 1 of the notes to the Citys financial statements. 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.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.