Aminoacylase involved in the hydrolysis of N-acetylated and N-formylated amino acids. May act sequentially with APEH in the degradation of N-acylated peptides: APEH first cleaves N-acylaminoacids from N-acylated peptides, then ACY1 further hydrolyzes the N- acylaminoacid into free aminoacid and a carboxylate. . This is the function of ACY1 (aminoacylase 1, Ensembl gene identifier ENSG00000243989).