Audit 39924

Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of the City of Portsmouth (the Citys) under programs of the federal government for theyear ended December 31, 2022. The information on this Schedule is prepared in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, 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 toand does not present the financial position, changes in net position, or cash flows of the City.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the cash basis of accounting. Such expendituresare recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,wherein certain types of expenditures may or may not be allowable or may be limited as toreimbursement.NOTE C INDIRECT COST RATEThe City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.NOTE D - MATCHING REQUIREMENTSCertain Federal programs require the City to contribute non-Federal funds (matching funds) to support theFederally-funded programs. The City has met its matching requirements. The Schedule does not includethe expenditure of non-Federal matching funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.