Notes to SEFA
Title: Oustanding Loans
Accounting Policies: Expenditures reported on the Schedule are reported on the modified-cash basis of accounting. The modified-cash basis used by management differs in many respects from accounting principles generally accepted in the United States of America as detailed below:(a) the acquisition of property and equipment is shown as an expense, which means that depreciation expense is never shown as such, nor is there ever a gain or loss to recognize on the disposal of property and equipment during its estimated useful life:(b) this schedule does not recognize prepaid expenses; rather, payments made in advance areshown as expenses of the reporting period:(c) no accrual has been made for unpaid vacation time even though such time has vested; instead, the expense is recognized in the period the vacation time is actually used.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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
At June 30, 2023, there was an outstanding loan under the United States Department of Agriculture Rural Development for an amount of $1,290,152. Other than repayment of principal and interest, there was no continuing compliance requirement on this loan, and as such, is not reported on the Schedule.