Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Company 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 WTC Captive under a program of the federal government for the year ended December 31,
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 WTC Captive, it is not intended to and does not present the financial position,
changes in net position, or cash flows of the WTC Captive.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following, as applicable, the cost principles in OMB Circular A-87, Cost Principles for State
and Local Governments wherein certain types of expenditures are not allowable or are limited as to
reimbursement. The Company has elected not to use the 10 percent de minimis indirect cost rate allowed
under the Uniform Guidance.
The following is a detailed listing of the components of the total expenditures of federal awards.
(In thousands)
Professional and management fees $ 617
Personnel expenses 623
General and administrative expenses 486
LAE - adjusting payments 85
LAE - all other payments 611
Settlement indemnity payments 1,400
Total expenditures of Federal Award $ 3,822