Audit 361987

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES and is presented on the accrual basis of accounting. 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 (OMB Guidance for Federal Financial Assistance). Because the Schedule presents only a selected portion of the operations of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES. De Minimis Rate Used: N Rate Explanation: MEMPHIS LAND BANK, INC. AND SUBSIDIARIES has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance. The accompanying schedule of expenditures of federal awards includes the federal award activity of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES and is presented on the accrual basis of accounting. 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 (OMB Guidance for Federal Financial Assistance). Because the Schedule presents only a selected portion of the operations of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES.

Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES and is presented on the accrual basis of accounting. 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 (OMB Guidance for Federal Financial Assistance). Because the Schedule presents only a selected portion of the operations of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MEMPHIS LAND BANK, INC. AND SUBSIDIARIES. De Minimis Rate Used: N Rate Explanation: MEMPHIS LAND BANK, INC. AND SUBSIDIARIES has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Guidance for Federal Financial Assistance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. MEMPHIS LAND BANK, INC. AND SUBSIDIARIES has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance.