Notes to SEFA
Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Electric Division (Division), a division of Bowling Green Municipal Utilities (BGMU), a component unit of the City of Bowling Green, Kentucky 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 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 Division, it is not intended to and does not present the financial position, changes in patronage capital and other equities, or cash flows of the Division.2. Expenditures 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. The Division has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.