Title: Basis of Presentation and Accounting
Accounting Policies: Expenditures 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards and State Financial
Assistance (the Schedule) includes the federal award activity under the programs of the federal
government and the State of Tennessee financial assistance to the City of Clinton,
Tennessee (the City) for the year ended June 30, 2023. This schedule excludes the
Clinton Utilities Board’s federal and state grant activity which is presented in a schedule in
separately issued audited financial statements. 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, it is not intended to and does not present the
financial position, changes in net position or cash flows of the City.
Federal Financial Assistance. Uniform Guidance defines federal financial assistance as grants,
loans, loan guarantees, property (including donated surplus property), cooperative
agreements, interest subsidies, insurance, food commodities, direct appropriations or
other assistance. Nonmonetary deferral assistance including food commodities is considered
federal assistance and, therefore, is reported on the Schedule. Federal financial assistance
does not include direct federal cash assistance to individuals.
Direct Payments. Assistance received directly from the Federal government is
classified as direct payments on the Schedule.
Pass-through Payments. Assistance received in a pass-through relationship from entities
other than the Federal government is classified as pass-through payments on the Schedule.
Major Programs. Uniform Guidance establishes the criteria to be used in defining major programs.
Major programs for the City of Clinton, Tennessee were defined using a risk-based
approach in accordance with Uniform Guidance.
Assistance Listing. The Assistance Listing is a government-wide compendium of individual
federal programs. Each program included in the catalog is assigned a five-digit program
identification number (Assistance Listing Number), which is reflected
e Schedule.
Cluster of Programs. Closely related programs that share common compliance
requirements are grouped into clusters of programs. A cluster of programs is
considered as one federal program for determining major programs. The following are
the clusters administered by the City of Clinton, Tennessee: Highway Safety, Child
Nutrition, and Special Education (IDEA).
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
Expenditures 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 allowable or are
limited as to reimbursement.
Title: Non-Cash Assistance
Accounting Policies: Expenditures 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
Non-cash assistance in the form of food commodities that the City of Clinton,
Tennessee consumed is also reported on the Schedule. Commodities with a fair value
of $25,048 at the time received were consumed during the year ended June 30, 2023.
These commodities were included in the determination of federal awards expended
during the year ended June 30, 2023.
Title: Indirect Costs
Accounting Policies: Expenditures 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
Title: Subrecipients
Accounting Policies: Expenditures 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: A number of the City’s federal and state funded programs allow indirect costs to be
charged and include them as a line item in the grant budget. However, if the grant
budget does not specifically provide for indirect costs to be charged, none of the
indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedule of expenditures of federal awards and state financial
assistance. The City has not elected to use the 10-percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
No Federal awards were passed through to subrecipients by the City.