Notes to SEFA
This schedule of expenditures of federal awards includes the federal grant activity of the City for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance) and the State of Tennessee. The expenditures of federal and state awards relating to PES Energize which is reported as a proprietary fund of the City as described in our report on the City’s financial statements are not included in the City’s schedule of expenditures of federal awards. This proprietary fund is separately audited and reported on in accordance with the Uniform Guidance, where applicable. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, change in net position, or cash flows of the City. Expenditures reported on the schedule are reported on the 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.
The City has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
During fiscal year 2025, the City recognized eligible expenditures incurred in the prior fiscal year (2024) under Federal Award 32701-04888, Assistance Listing Number 21.027, for reimbursement purposes. The expenditires relate to Water and Sewer capital projects that were properly incurred in FY 2024 but reimbursed by the federal awarding agency in FY 2025.