Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and
state grant activity of Davidson County under the programs of the federal government and the state of North
Carolina for the year ended June 30, 2023. The information in this SEFSA 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 and the State Single Audit Implementation Act. Because
the Schedule presents only a selected portion of the operations of Davidson County, it is not intended to and does
not present the financial position, changes in net position or cash flows of Davidson County.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.
Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
Title: Cluster of Programs
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.
The following are clustered by the NC Department of Health and Human Services and are treated separately for
state audit requirement purposes - Special Children Adoption Fund, Subsidized Child Care Program, and Foster
Care, Adoption, and Guardianship Assistance Program.
Title: Loans Outstanding
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.
Davidson County had the following loan balances outstanding at June 30, 2023 for loans that the grantor/passthrough
grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the
year and loans made during the year are included in the SEFSA. The balance of loans outstanding at June 30,
2023 consist of: Program Title AL Number Pass-through Grantor's Number Amount Outstanding Rural Economic Development Loans and Grants -
EnergyUnited Electric Membership Corporation 10.854 2014 $ 1 ,020,000
Title: Indirect Cost Rates
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.
Davidson County has elected not to use the 10-percent de minimus indirect cost rate as allowed under the
Uniform Guidance.