Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures included in the schedule of expenditures of federal awards 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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal activity of Weakley County Municipal Electric System 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).
Title: Loan Outstanding
Accounting Policies: Expenditures included in the schedule of expenditures of federal awards 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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
For the year ended June 30, 2022, there was a beginning balance of $633,333 on the Rural Economic Development Loan received during a prior year. Payments during the current fiscal year totaled $91,666.