Notes to SEFA
Title: Note 3
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made 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.
The City of Redfield's basic financial statements include the operations of the Hospital Fund, which had expended federal awards which are not included in the City of Redfield's schedule of expenditures of federal awards during the year ended December 31, 2022. Our audit, as described in the Independent Auditors' Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance, did not include the operations of the Hospital Fund because other auditors were engaged to perform an audit of compliance on the Hospital Fund.