Audit 341586

Title: Note A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedules 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. De Minimis Rate Used: N Rate Explanation: The City will use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, when applicable. The accompanying schedules of expenditures of federal awards and state financial assistance include the grant activity of the City of Murfreesboro under programs of the federal and state governments for the year ended June 30, 2024. The information in these schedules 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 schedules present only a selected portion of the operations of the City of Murfreesboro, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Murfreesboro. Expenditures reported on the schedules 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.

Title: Note B – CONTINGENCY Accounting Policies: Expenditures reported on the schedules 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. De Minimis Rate Used: N Rate Explanation: The City will use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, when applicable. The grant expenditure amounts are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the City of Murfreesboro. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.

Title: Note C – DE MIMIMIS INDIRECT COST RATE Accounting Policies: Expenditures reported on the schedules 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. De Minimis Rate Used: N Rate Explanation: The City will use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, when applicable. The City will use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, when applicable.