Notes to SEFA
Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONA. Non-cash Federal Programs Uniform GuidanceThe City is the recipient of federal awards that do not result in cash receipts or disbursements, including the distribution of U.S. Department of Agriculture (USDA) Food Commodities (CFDA No. 10.555), which are valued based on a USDA price list obtained from the Tennessee Department of Health. Distributions under such programs are included in the accompanying Schedule of Expenditures of Federal and State Awards in the non-cash assistance section.B. Federal Financial Assistance without CFDA NumbersFederal Awards which have no assigned CFDA number have been included in the last section of the appropriate federal agency section.C. Schedule of Expenditures of State AwardsIn compliance with Tennessee state law, the accompanying Schedule of Expenditures of State Awards is included with this report. Such schedule presents all state funded financial awards, as defined by the State Comptrollers Office, and is prepared and presented in a manner consistent with the Schedule of Expenditures of Federal Awards.NOTE 2 - BASIS OF ACCOUNTINGThe expenditures presented in the accompanying Schedule of Expenditures of Federal and State Awards were developed from agency records and federal and state financial reports which have been reconciled to the accounting records of the City Schools. Governmental funds are reported using a modified accrual basis of accounting. The City Schools records serve as the primary source of information in preparation of the City Schools basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.