Audit 89753

Accounting Policies: NOTE 1: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Northport, Alabama, and is presented on the modified accrual basis of accounting. The information in this schedule is presented 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 of Northport, Alabama, it is not intended to and does not present the financial position or changes in net position of the City of Northport, Alabama.NOTE 2: BASIS OF ACCOUNTINGExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowed or are limited as to reimbursement. NOTE 3: REPORTING ENTITYThe Citys reporting entity is fully described in Note 1 to the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.