Audit 26303

Title: Loan/loan agreement outstanding balances Accounting Policies: NOTE 1 BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state grant activity of the City of Lakeland, Tennessee (the City) under programs of the federal government for the year ended June 30, 2022. 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, Costs 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 assets, or cash flows of the City. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1) Expenditures reported on the Schedule 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.2) Pass-through entity identifying numbers are presented where available.3) There were no federal awards passed through to subrecipients.4) The City has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance. 5) Non monetary assistance is reported in the schedule at the fair market value of the commodities received anddisbursed.6) The loan balance for the Community Facilities Loans and Grants Cluster totaled $59,761,513. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were $59,761,513.