Audit 363481

Title: Note 3 - Program Costs Accounting Policies: This Schedule is prepared on the same basis of accounting as the City of Poulsbo’s financial statements. The City of Poulsbo uses the accrual basis of accounting in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard setting body for establishing governmental accounting and financial reporting principles. De Minimis Rate Used: Y Rate Explanation: The City of Poulsbo has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the City of Poulsbo’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.