Notes to SEFA
Title: Note D - Loans Outstanding
Accounting Policies: Note A Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the organization under programs of the federal government 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, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the organization.Note B Summary of Significant Accounting PoliciesExpenditures 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: The auditee did not use the de minimis cost rate.
As discussed in the Long-Term Debt note on page 45, the Town received a loan $23,320 from the North Carolina Department of Environmental Quality. This amount was paid back in full in July 2021. The Town also has a revolving line of credit from the North Carolina Office of Recovery and Resiliency to help fund expenditures associated with the Hazard Mitigation Grant. The balance owed on this revolving line of credit is $115,861 at June 30, 2022.