Title: Basis of Presentation
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial
assistance were developed from agency records and federal and state financial reports which have been reconciled
to the central accounting records of the government. Governmental funds are reported using a modified accrual
basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects
funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance
The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal
and state grant activity of the City of Memphis and is presented on the modified accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from those presented
in, or used in, preparing the general‐purpose financial statements.
In compliance with Tennessee state law, the accompanying schedule of expenditures of state financial assistance is
included in this report. The schedule presents all state‐funded financial awards, as defined by the State Comptroller
of the Treasury's Office, and is prepared and presented in a manner consistent with the schedule of expenditures of
federal awards.
Title: Basis of Accounting
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial
assistance were developed from agency records and federal and state financial reports which have been reconciled
to the central accounting records of the government. Governmental funds are reported using a modified accrual
basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects
funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance
The expenditures presented in the associated schedules of expenditures of federal awards and state financial
assistance were developed from agency records and federal and state financial reports which have been reconciled
to the central accounting records of the government. Governmental funds are reported using a modified accrual
basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects
funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
Title: Federal loans
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial
assistance were developed from agency records and federal and state financial reports which have been reconciled
to the central accounting records of the government. Governmental funds are reported using a modified accrual
basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects
funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $100,000,000 (SRF 13‐311) to improve its sewer system. The amount listed for this loan, $84,843,844,
includes proceeds during the year and the outstanding loan balance from prior years.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $7,000,000 (SRF 06‐195) to improve its sewer system. The amount listed for this loan, $2,267,189, includes
proceeds during the year and the outstanding loan balance from prior years. This loan has been closed out and no
further draws will be made on it.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $22,000,000 (SRF 13‐309) to improve its sewer system. The amount listed for this loan, $8,788,961, includes
proceeds during the year and the outstanding balance from prior years.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $25,000,000 (SRF 15‐355) to improve its sewer system. The amount listed for this loan, $22,370,986,
includes proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $11,000,000 (SRF 18‐409) to improve its sewer system. The amount listed for this loan, $9,758,199, includes
proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $6,500,000 (SRF 19‐421) to improve its sewer system. The amount listed for this loan, $5,729,176, includes
proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $48,000,000 (SRF 19‐434) to improve its sewer system. The amount listed for this loan, $41,435,415,
includes proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan
totaling $15,000,000 (SRF 21‐451) to improve its sewer system. The amount listed for this loan, $12,427,474,
includes proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, to receive a Water Infrastructure
Finance and Innovation Act (WIFIA) loan totaling $156,000,000 (18157TN) to improve its sewer system. The amount
listed for this loan, $64,589,594, includes proceeds during the year.
Both the current and prior year loans are also reported on the City of Memphis's Statement of Net Position for
Proprietary Funds. Also, the current loan payable and the long‐term loan payable equal the total loan amounts. (see
Exhibit A‐9)
Title: Contingencies
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial
assistance were developed from agency records and federal and state financial reports which have been reconciled
to the central accounting records of the government. Governmental funds are reported using a modified accrual
basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects
funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance
The federal and state awards received by the City of Memphis are subject to audit and adjustment. If any
expenditures are disallowed by the grantor agencies because of such an audit, the grantor agencies could make a
claim for reimbursement, which would become a liability of the City of Memphis.