Notes to SEFA
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City under programs of the federal government for the fiscal year. 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 assets, or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The City has not made an election regarding use of 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior fiscal years.
Title: FOOD DISTRIBUTION
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City under programs of the federal government for the fiscal year. 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 assets, or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The City has not made an election regarding use of the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Non-monetary assistance is reported in the schedule at the fair market value of commoditites received and used. At June 30, 2024, the School Board had food commodities totaling $161,437 on hand in inventory.
Title: OUTSTANDING LOAN BALANCES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City under programs of the federal government for the fiscal year. 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 assets, or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: The City has not made an election regarding use of the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The City has a State Revolving Loan with an outstanding balance of $9,459,913 at June 30, 2024. The interest rate is 1.78%. The project was completed in FY2018. The City of Kingsport has a State Revolving Loan with an outstanding balance of $1,251,160 at June 30, 2024. The interest rate is 1.06%. The project was completed in FY2023. The City of Kingsport has a new State Revolving Loan with an outstanding balance of $0 at June 30, 2024. The total loan available is $7,000,000 and carries an interest rate of 2.13% and an administrative fee of 0.08%. The first draw down will be in FY25.