Notes to SEFA
Title: CAPITAL ADVANCE
Accounting Policies: The schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the Project 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 Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of th operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. Expenditures reported on the schedule are report4ed 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 limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For purposes of presentation on the schedule, the Uniform Guidance requires that the balance of
the Section 811 capital advance be included for each of the 40 years through which continuing
compliance requirements must be met (June 1, 2044). For purposes of presentation on the Project’s
financial statements, this balance is reported as net assets with donor restrictions, in accordance with
generally accepted accounting principles.