Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the “Schedule”)
includes the federal and state award activity of Porter-Leath under programs of the federal and state governments
for the year ended June 30, 2023. 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 (“Uniform Guidance”) and the Tennessee Comptroller of the Treasury Audit
Manual. 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.
De Minimis Rate Used: N
Rate Explanation: Porter Leath has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform
Guidance.