Audit 44185

Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federalaward activity of the City of Scottsboro, Alabama (the "City") under programs of the federalgovernment for the year ended September 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the City ofScottsboro, Alabama, it is not intended to and does not present the financial position, changes in netposition, or cash flows of the City of Scottsboro, Alabama.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement.In accordance with the Uniform Guidance Section 200.502, expenditures for grant programs areincluded in the Schedule when the expense (which will be paid from the grant funds) is incurred (underthe accrual basis of accounting) within the period covered by the Schedule (during the year endedSeptember 30, 2022). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.