Notes to SEFA
Title: Note 1. Basis of Presentation
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Merrimack Village District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Merrimack Village District under programs of the federal government for the year ended June 30, 2023. 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 Merrimack Village District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Merrimack Village District.
Title: Note 4. Loans Outstanding
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Merrimack Village District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Merrimack Village District had no outstanding loan balance at June 30, 2023. During fiscal year 2023, the District refinanced the Drinking Water State Revolving Loan with the State of New Hampshire. At the time of the refinancing, the outstanding balance was $4,150,428 and was converted into a state-funded per- and polyfluoroalkyl substances (PFAS) remediation loan. As part of the agreement, the District also received a grant funded by the American Rescue Plan Act (ARPA) which reduced the overall loan balance. The loans made during the year against the Drinking Water State Revolving Loan and grant portion funded by ARPA are included in the federal expenditures presented in Schedule II.