Notes to SEFA
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards and state financial assistance includesthe federal and state grant activity of the Millington Airport Authority under programs of the federalgovernment. The information in the Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the Authority, it is not intended to and does not present the financialposition, changes in net position, or cash flows of the Authority.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1) Expenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance whereincertain types of expenditures are not allowable or are limited as to reimbursement.2) Pass-through entity contract numbers are presented where available.3) There were no federal awards passed through to subrecipients.4) The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under theUniform Guidance.5) The grant revenue amounts received and expensed (eligible for reimbursement) are subject to auditadjustment. If any expenses are disallowed by the grantor as a result of such audit and claim forreimbursement to the grantor would become a liability of the City. In the opinion of management, allgrant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreementand applicable federal and state laws and regulations.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.