Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Pee Dee Math, Science and Technology Academy (the School) under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the audit 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"). Because the schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the statements of financial position, activities, and cash flows of the School.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Basis of Accounting - Expenditures reported on the schedule are reported on the modified accrual basis of accounting.
Title: Note 3 - De Minimus Indirect Cost Rate
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The School has elected not to use the 10% de minimus indirect cost rate as allowed under Uniform Guidance.
Title: Note 4 - Other Matters
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The federal expenditures related to the Community Faciltiy Loan (CFDA 10.766) noted above relates to interim financing and will be refinanced with a US Department of Agriculture loan of $5,903,200. $870,816 of the expenditures have been paid with interim financing as of June 30, 2023. The loans will have future compliance requirements.