Notes to SEFA
Title: EPA Loan outstanding footnote
Accounting Policies: NOTE 1: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Athol (the City) under programs of the federal government for the year ended September 30, 2022. The information on this Schedule is prepared 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Government, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Government. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIIES Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited to reimbursement. Pass-through entity identifying numbers are presented where available. NOTE 3: INDIRECT COST RATE The Government has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4: MATCHING REQUIREMENTS Certain Federal programs require the Government to contribute non-Federal funds (matching funds) to support Federally funded programs. The City has met its matching requirements. The schedule does not include the expenditure of non-Federal matching funds. NOTE 5: LOANS OUTSTANDING The City has a loan through the Environmental Protection Agency of $284,340. The outstanding principal balance at September 30, 2022 is $284,340, of which was spent in prior fiscal year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The loan is not through the EPA, it is through the State of Idaho Department of Environmental Quality. There were federal funds of $623,509 which were part of the loan expenditures during FY 21 and FY22, however, the loan is through the State of Idaho Department of Environmental Quality rather than directly through the EPA.