Audit 54276

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes thefederal and state grant activity of the City of Knoxville, Tennessee (the City) for the year ended June 30,2022. 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, andAudit Requirement for Federal Awards (Uniform Guidance) and the State of Tennessee. The expendituresof federal and state awards relating to the Knoxville Utilities Board and the Metropolitan Knoxville AirportAuthority which are reported as component units of the City as described in our report on the Citys financialstatements are not included in the Citys schedule of expenditures of federal and state awards. Thesecomponent units are separately audited and reported on in accordance with the Uniform Guidance, whereapplicable.Expenditures reported on the schedule are reported using the modified 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. The City De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 3535211. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 9545899.EMPOWERMENT ZONE GRANT PROGRAM INCOME (14.U00) - Balances outstanding at the end of the audit period were 95060.