Audit 70878

Title: Federal Award Identification Numbers Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the federal financial assistance programs of the City of Raton, New Mexico (the City), and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate The federal granting agency is responsible for providing the City with the AssistanceListing Number (ALN) for each grant or contract. In cases where the federal grantingagency did not provide the ALN to the City, other identifying numbers are presented onthe Schedule.In addition, for pass-through awards, the pass-through granting agencies are responsiblefor providing the City with pass-through grantor numbers. In cases where the passthrough granting agency did not provide this number to the City, it is blank on theSchedule

Title: Outstanding Bonds with the U.S. Department of Agriculture Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the federal financial assistance programs of the City of Raton, New Mexico (the City), and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate n April 2006 and June 2020, the City issued bonds with the U.S. Department ofAgriculture for improvements to its water and waste water system. All funds under thesebonds have been expended as of June 30, 2022. Bonds outstanding at June 30, 2022totaled $3,734,394 and are included in long-term debt of business-type activities in thestatement of net position. See Note 8 to the financial statements for more informationregarding these bonds