Notes to SEFA
Accounting Policies: NOTE A – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
award activity of the City of Portsmouth (the City’s) under programs of the federal government for the
year ended December 31, 2024. The information on this Schedule is prepared 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).
Because the Schedule presents only a selected portion of the operations of the City, it is not intended to
and does not present the financial position, changes in net position, or cash flows of the City.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures may or may not be allowable or may be limited as to reimbursement.
NOTE C – INDIRECT COST RATE
The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
NOTE D - SUBRECIPIENTS
The City passes certain federal awards received from Ohio Department of Health to other governments or
not-for-profit agencies (subrecipients). As Note B describes, the City reports expenditures of Federal
awards to subrecipients when paid in cash.
As a pass-through entity, the City has certain compliance responsibilities, such as monitoring its
subrecipients to help assure they use these subawards as authorized by laws, regulations, and the
provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance
goals.
NOTE E – MATCHING REQUIREMENTS
Certain Federal programs require the City to contribute non-Federal funds (matching funds) to support the
Federally-funded programs. The City has met its matching requirements. The Schedule does not include
the expenditure of non-Federal matching funds.
De Minimis Rate Used: N
Rate Explanation: n/a