Title: Basis of Presentation
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Tea under programs
of the federal government for the year ended December 31, 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 City of Tea, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the Municipality. Expenditures reported on the Schedule are reported on the cash 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 City of Tea has not
elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Tea under programs
of the federal government for the year ended December 31, 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 City of Tea, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the Municipality.
Title: Summary of Significant Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Tea under programs
of the federal government for the year ended December 31, 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 City of Tea, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the Municipality. Expenditures reported on the Schedule are reported on the cash 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 City of Tea has not
elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed.
Expenditures reported on the Schedule are reported on the cash 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 City of Tea has not
elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance
Title: Federal Loan Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City of Tea under programs
of the federal government for the year ended December 31, 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 City of Tea, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the Municipality. Expenditures reported on the Schedule are reported on the cash 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 City of Tea has not
elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed.
The City of Tea had the following loan balances outstanding from the South Dakota Clean Water State Revolving Fund, Assistance Listing #66.458 and
the South Dakota Drinking Water State Revolving Fund, Assistance Listing #66.468 for the year ended December 31, 2022. Total Amount of Loan
Outstanding
Federal Portion of
Loan Outstanding
Clean Water Series 2020 (2.21%) $ 4,404,677 $ 1,187,167
Clean Water Series 2021 (2.13%) 1,376,719 -
Drinking Water Series 2021 (2.13%) 770,956 -
Drinking Water Series 2021 (2.13%) 2,017,415 -
$ 8,569,767 $ 1,187,167