Title: NOTE 1 - Basis of Presentation
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial assistance were developed from agency records and federal and state financial reports which have been reconciled to the central accounting records of the government. Governmental funds are reported using a modified accrual basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate
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 City of Memphis and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from those presented in, or used in preparing the general-purpose financial statements.
In compliance with Tennessee state law, the accompanying schedule of expenditures of state financial assistance is included in this report. The schedule presents all state-funded financial awards, as defined by the State Comptroller of the Treasury's Office, and is prepared and presented in a manner consistent with the schedule of expenditures of federal awards.
Title: NOTE 2 - Basis of Accounting
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial assistance were developed from agency records and federal and state financial reports which have been reconciled to the central accounting records of the government. Governmental funds are reported using a modified accrual basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate
under the Uniform Guidance.
The expenditures presented in the associated schedules of expenditures of federal awards and state financial assistance were developed from agency records and federal and state financial reports which have been reconciled to the central accounting records of the government. Governmental funds are reported using a modified accrual basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
Federal and state revenues and expenditures are included in the general fund, special revenue funds, capital projects funds, and enterprise funds in the government's basic financial statements.
The City of Memphis has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
Title: NOTE 3 - Federal Loans
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial assistance were developed from agency records and federal and state financial reports which have been reconciled to the central accounting records of the government. Governmental funds are reported using a modified accrual basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate
under the Uniform Guidance.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $100,000,000 (SRF 13-311) to improve its sewer system. The amount listed for this loan, $84,008,486, includes proceeds during the year and the outstanding loan balance from prior years.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $7,000,000 (SRF 06-195) to improve its sewer system. The amount listed for this loan, $2,228,873, includes proceeds during the year and the outstanding loan balance from prior years. This loan has been closed out and no further draws will be made on it.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $22,000,000 (SRF 13-309) to improve its sewer system. The amount listed for this loan, $8,689,861, includes proceeds during the year and the outstanding balance from prior years. The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $48,000,000 (SRF 19-434) to improve its sewer system. The amount listed for this loan, $42,546,271, includes proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $15,000,000 (SRF 21-451) to improve its sewer system. The amount listed for this loan, $12,368,481, includes proceeds during the year.
The City of Memphis was approved by the Environmental Protection Agency, to receive a Water Infrastructure Finance and Innovation Act (WIFIA) loan totaling $156,000,000 (18157TN) to improve its sewer system. The amount listed for this loan, $75,388,909, includes proceeds during the year.
Both the current and prior year loans are also reported on the City of Memphis's Statement of Net Position for Proprietary Funds. Also, the current loan payable and the long-term loan payable equal the total loan amounts. (see Exhibit A-9)
The City of Memphis was approved by the Environmental Protection Agency, Office of Water, to receive a loan totaling $6,500,000 (SRF 19-421) to improve its sewer system. The amount listed for this loan, $5,675,740, includes proceeds during the year.
Title: NOTE 4 – Contingencies
Accounting Policies: The expenditures presented in the associated schedules of expenditures of federal awards and state financial assistance were developed from agency records and federal and state financial reports which have been reconciled to the central accounting records of the government. Governmental funds are reported using a modified accrual basis of accounting. Proprietary funds are reported using the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The City of Memphis has not elected to use the 10% de minimis indirect cost rate
under the Uniform Guidance.
The federal and state awards received by the City of Memphis are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies because of such an audit, the grantor agencies could make a claim for reimbursement, which would become a liability of the City of Memphis