Notes to SEFA
Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Awards (the Schedules) include the federal and state award activity of Theatre Memphis under programs of the federal and state governments for the year ended June 30, 2022. Because the Schedules present only a selected portion of the operations of Theatre Memphis, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Theatre Memphis. Expenditures reported on the Schedules are reported on the accrual basis of accounting. Theatre Memphis does not have an approved indirect cost allocation plan and therefore is subject to using the 10 percent de minimis indirect cost rate.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.