Audit 336499

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: 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 Town has elected not to use the 10% 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 any claim for reimbursement to the grantor would become a liability of the Town. 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. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate as allowed 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 Town of Collierville, Tennessee (the Town) under programs of the federal government for the year ended June 30, 2024. 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). Therefore, some amounts presented in this schedule may differ from amounts presented or used in the presentation of the financial statements. Because the schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Town.

Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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 Town has elected not to use the 10% 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 any claim for reimbursement to the grantor would become a liability of the Town. 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. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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 Town has elected not to use the 10% 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 any claim for reimbursement to the grantor would become a liability of the Town. 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: 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 Town has elected not to use the 10% 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 any claim for reimbursement to the grantor would become a liability of the Town. 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. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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 Town’s financial statements. Total grant revenue per governmental funds financial statements $ 20,284,436 Collierville Schools grant revenue ( 17,750,764) Add: Change in unavailable revenue ( 161,926) Less: Non-federal and non-state grants and awards ( 443,765) Add: Grant revenue in proprietary fund 349,222 Total federal awards and state financial assistance $ 2,277,203