Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: 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 Millington, Tennessee (the “City”) under programs of the federal and state government for the year ended June 30, 2023. 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.
De Minimis Rate Used: N
Rate Explanation: The suditee did not use the de minimis cost rate
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 Millington, Tennessee (the “City”) under programs of the federal and
state government for the year ended June 30, 2023. 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.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: 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 Millington, Tennessee (the “City”) under programs of the federal and state government for the year ended June 30, 2023. 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.
De Minimis Rate Used: N
Rate Explanation: The suditee did not use the de minimis cost rate
1. 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. The grant revenue amounts received and expensed (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit and claim for reimbursement to the grantor
would become a liability of the City. In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations.
Title: NOTE C – RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE TO THE FINANCIAL STATEMENTS
Accounting Policies: 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 Millington, Tennessee (the “City”) under programs of the federal and state government for the year ended June 30, 2023. 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.
De Minimis Rate Used: N
Rate Explanation: The suditee did not use the de minimis cost rate
The following is a reconciliation of expenditures per the schedule of expenditures of federal awards and state financial
assistance to the revenue balances in the City’s financial statements. Total grant revenue per governmental funds financial statements $ 12,320,072 Millington Municipal Schools federal awards ( 8,489,916) Millington Municipal Schools non-federal awards ( 1,033,466) City of Millington non-federal and non-state awards ( 7,567) Change in City of Millington unavailable revenue 1,454,971 Prior period restatement of revenue not recognized 260,587 Prior year federal expenditures billed in the current year ( 568,547) Total federal awards and state financial assistance $ 3,936,134