Audit 40757

Title: Note 3. Donated Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: Note 1. Summary of Significant Accounting PoliciesThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of the City of Portsmouth, New Hampshire (the City) under programsof the federal government for the year ended June 30, 2022. The information in the Scheduleis presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the City, it is not intended to and does not present the financialposition, changes in net position, or cash flows of the City.Expenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited toreimbursement.The amounts reported for the National School Lunch Program NonCash Assistancerepresent the fair value of commodities received. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During fiscal year 2022, the City did not receive donated PPE from federal sources.