Title: NOTE 3 - LOANS OUTSTANDING
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and of state financial assistance (the “Schedules”)
include the federal award and state grant activity of Knox County, Tennessee (the “County”), and its discretely
presented component unit, Knox County Board of Education, (the “Board”), 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) and the Tennessee Comptroller of the Treasury. Because the Schedules present only a
selected portion of the operations of Knox County, Tennessee, they are not intended to and do not present the
financial position, changes in net position, or cash flows of Knox County, Tennessee. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedules 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 in the Schedules represent
adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 6 - INDIRECT COSTS A number of the County's and Board’s federal and state funded programs allow indirect costs to be charged and
include them as a line item in the grant budget. However, if the grant budget does not specifically provide for indirect
costs to be charged, none of the indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedules of expenditures of federal awards and of state financial assistance. The County and Board
have elected not to use the ten percent de minimis indirect rate as allowed under the Uniform Guidance.
The County had the following loan funding balances outstanding at June 30, 2024. All of the loan additions are
represented by program expenditures, but only a portion comes from the federal grant with the remainder from
program income: Cluster/Program Title, AL Number, FY2024 Loan Funding, Outstanding Balance; Community Development Block Grant, 14.218,$0, $192,724; HOME Investment Partnership Programs, 14.239, $0, $417,242
Title: NOTE 4 - SUBRECIPIENTS
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and of state financial assistance (the “Schedules”)
include the federal award and state grant activity of Knox County, Tennessee (the “County”), and its discretely
presented component unit, Knox County Board of Education, (the “Board”), 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) and the Tennessee Comptroller of the Treasury. Because the Schedules present only a
selected portion of the operations of Knox County, Tennessee, they are not intended to and do not present the
financial position, changes in net position, or cash flows of Knox County, Tennessee. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedules 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 in the Schedules represent
adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 6 - INDIRECT COSTS A number of the County's and Board’s federal and state funded programs allow indirect costs to be charged and
include them as a line item in the grant budget. However, if the grant budget does not specifically provide for indirect
costs to be charged, none of the indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedules of expenditures of federal awards and of state financial assistance. The County and Board
have elected not to use the ten percent de minimis indirect rate as allowed under the Uniform Guidance.
Regarding expenditures presented in the schedule of expenditures of federal awards, the County provided federal
awards to subrecipients as follows: Cluster/Program Title, AL Number, Amounts Provided to Subrecipients; Community Development Block Gratn, 14.218, $958,614; Coronavirus State and Local Fiscal Recovery Runds, 21.027, $22,205,142. Total Subrecipient Awards, $23,163,756.
Title: NOTE 5 - NON-CASH ASSISTANCE
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and of state financial assistance (the “Schedules”)
include the federal award and state grant activity of Knox County, Tennessee (the “County”), and its discretely
presented component unit, Knox County Board of Education, (the “Board”), 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) and the Tennessee Comptroller of the Treasury. Because the Schedules present only a
selected portion of the operations of Knox County, Tennessee, they are not intended to and do not present the
financial position, changes in net position, or cash flows of Knox County, Tennessee. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedules 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 in the Schedules represent
adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 6 - INDIRECT COSTS A number of the County's and Board’s federal and state funded programs allow indirect costs to be charged and
include them as a line item in the grant budget. However, if the grant budget does not specifically provide for indirect
costs to be charged, none of the indirect costs are reported as costs to the grantor nor are the costs included or
presented in the schedules of expenditures of federal awards and of state financial assistance. The County and Board
have elected not to use the ten percent de minimis indirect rate as allowed under the Uniform Guidance.
The Board is the recipient of certain federal awards that do not result in cash receipts or disbursements, including
distributions of U.S. Department of Agriculture (USDA) Food Commodities, which are valued based on a USDA price
list obtained from the Tennessee Department of Agriculture.