Notes to SEFA
The accompanying schedules of expenditures of federal and state awards (the schedules) include the federal and state activity of Mid-Cumberland Human Resource Agency (the Agency) for the year ended June 30, 2025. The information in these schedules 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. Because the schedules present only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. The schedules reflects the addition of Highland Rim Economic Corporation (HREC) as a blended component unit in the current year. The change reflects an additional $853,842 of accrued revenue at June 30, 2024.
Expenditures reported on the schedules are reported using the modified 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 Agency has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The Agency did not provide federal or state assistance to any subrecipients during the year ended June 30,2025.
The accompanying schedule of expenditures of federal awards includes the Agency’s noncash assistance under federal commodity programs for the year ended June 30, 2025. Noncash federal assistance is valued at amounts provided by the grantor agency, which typically represent the fair value of the commodities at the time of receipt, in accordance with Uniform Guidance (2 CFR 200.510(b)(4)). The beginning balance at June 30, 2024, represents commodities inventory held at the end of the prior fiscal period. Receipts reflect the value of commodities received from the grantor agency during the current period. Federal expenditures represent the value of commodities distributed during the current period. Adjustments may include price adjustments, spoilage, damaged goods or other reconciling items. The ending balance at June 30, 2025, represents commodities inventory held at the close of the current period.