Notes to SEFA
Title: Note 1. Organization
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
The Mark Twain Regional Council of Governments (the Council), is the recipient of several federal awards. All federal awards received directly from federal agencies as well as those awards that are passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards.
Title: Note 2. Basis of Presentation
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Council and is presented on the accrual basis of accounting. The information presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: Note 3. Local Government Contributions
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
Local cost sharing, as defined by Title 2 CFR Part 200, Subpart D, Section 200.306 is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards.
Title: Note 4. Additional Audits
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
Grantor agencies reserve the right to conduct additional audits of the Council’s grant programs for economy and efficiency and program results that may result in disallowed costs to the Council. However, management does not believe such audits would result in any disallowed costs that would be material to the Council’s financial position at June 30, 2023.
Title: Note 5. Indirect Cost Rate
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
Except as otherwise noted, The Council has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Council entered into an indirect cost negotiation agreement with the Federal Government to which 2 CRF Part 200 applies subject to limitations specified in the agreement. The Council’s indirect cost rate negotiated pursuant to the U.S Department of Interior’s State and Local Governments Indirect Cost Negotiation Agreement is 20% for the fiscal year ended June 30, 2023. The Council charges all programs (federal, state and local) actual indirect costs not to exceed its negotiated indirect cost rate. The methodology for allocable indirect costs is reasonable and in accordance with Uniform Guidance regarding applicable federal agencies.
Title: Note 6. Outstanding Notes Receivable
Accounting Policies: Modified accrual basis
De Minimis Rate Used: N
Rate Explanation: A 20% rate was negotiated per the US Department of interior's State and Local Governments Indirect Cost Negotiation Agreement
The outstanding notes receivable balances as of June 30, 2023 were $136,090 for the Legacy RLF and $217,016 for the Cares Act RLF.