Audit 332658

Title: (2) Relationship to basic Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Newport News, Virginia (the City), except the Peninsula Airport Commission and the Newport News Public Schools, which have separate reports in accordance with the Uniform Guidance. The information in this Schedule is presented on the modified accrual basis of accounting in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The City operates on a contractual basis with its grant partners except for its relationship with NNRHA. NNRHA is a sub-recipient of the City for the Community Development Block Grant Program (CFDA number 14.218) and the Home Investment in Affordable Housing Program (CFDA number 14.239). The amounts passed through to NNRHA for the Community Development Block Grant Program, the Community Development Block Grant-Coronavirus, and the Home Investment in Affordable Housing Program were $1,139,910, $1,065,251 and $1,331,406 respectively. NNPS is a subrecipient of the City for the Virginia First Cities TANF Grant Program (ALN 93.558). The amount passed through to NNPS for the grant was $401,553. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimus cost rate. Federal expenditures are reported in the City's basic financial statements as follows: See Notes to the SEFA for Chart/Table.