Notes to SEFA
Title: Federal Loan Program
Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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.
The City of Vermillion had the following loan balances outstanding from the SD Clean Water State Revolving Fund, Assistance Listing #66.458 and the SD Drinking Water State Revolving Fund, Assistance Listing #66.468 at December 31, 2022. Total Amount of Loan Outstanding, Federal Portion of Loan Outstanding. Clean Water Series 2008 (6.7%) - $1,930,039, $129,313. Clean Water Series 2009 (50%) - 117,923, 58,962. Clean Water Series 2017 (71.69%) - 642,887, 460,886. Drinking Water Series 2002 (79.72%) - 152,821, 121,829. Drinking Water Series 2006 (1%) - 1,104,435, 11,044. Drinking Water Series 2013 (26.8%) - 791,735, 212,185.
Title: Federal Surplus Property
Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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.
The amount reported represents 23.3% of the original acquisition cost of the federal surplus property received by the City.