Notes to SEFA
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 contract numbers are presented where available.
3) There were no federal awards passed through to subrecipients.
4) The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
5) Non-monetary assistance is reported in the Schedule at the fair value of the commodities received and
disbursed.
De Minimis Rate Used: N
Rate Explanation: The City 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 (the Schedule) includes
the federal and state grant activity of the City of Germantown, Tennessee (the City) under programs of the federal and
state governments 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). 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 position, or cash flows of the City.
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 contract numbers are presented where available.
3) There were no federal awards passed through to subrecipients.
4) The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
5) Non-monetary assistance is reported in the Schedule at the fair value of the commodities received and
disbursed.
De Minimis Rate Used: N
Rate Explanation: The City 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 contract numbers are presented where available.
3) There were no federal awards passed through to subrecipients.
4) The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
5) Non-monetary assistance is reported in the Schedule at the fair value of the commodities received and
disbursed.
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 contract numbers are presented where available.
3) There were no federal awards passed through to subrecipients.
4) The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
5) Non-monetary assistance is reported in the Schedule at the fair value of the commodities received and
disbursed.
De Minimis Rate Used: N
Rate Explanation: The City 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 City’s financial statements.
Total grant revenue per governmental funds financial statements $ 10,665,693
Change in deferred revenue at the fund level 1,479,679
Write-off of prior year receivable 1 26,349
Non-federal and non-state grants
City of Germantown ( 28,918)
Total federal awards and state financial assistance $ 1 2,242,803