Audit 11372

Title: Note B - CONTINGENCY Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance includes the grant activity of the Murfreesboro City Schools under programs of the federal and state governments for the year ended June 30, 2023. The information in these schedules 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 schedules present only a selected portion of the operations of the Murfreesboro City Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Murfreesboro City Schools. Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The board of education has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The grant expenditure amounts are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Murfreesboro City Schools. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.