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 recorded when the liabilities are incurred.
De Minimis Rate Used: N
Rate Explanation: Auditee applied for the cost rate through a cognizant agency.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Lee-Russell Council of Governments, under programs of the federal government for the year ended September 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 Lee-Russell Council of Governments, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Lee-Russell Council of Governments.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recorded when the liabilities are incurred.
De Minimis Rate Used: N
Rate Explanation: Auditee applied for the cost rate through a cognizant agency.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recorded when the liabilities are incurred.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recorded when the liabilities are incurred.
De Minimis Rate Used: N
Rate Explanation: Auditee applied for the cost rate through a cognizant agency.
The Lee-Russell Council of Governments, has elected not to use the 10-percent de-minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - Revolving Loan Funds
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recorded when the liabilities are incurred.
De Minimis Rate Used: N
Rate Explanation: Auditee applied for the cost rate through a cognizant agency.
The Council administered two revolving loan funds (“RLF”) from the United States Department of Commerce’s Economic Development Administration (“EDA”) in the current audit period. The first loan fund, the EDA CARES revolving loan fund, had a client outstanding loan balance, as of year-end, September 30, 2023, totaling $466,418. The next loan fund was for the EDA Resilient Recovery revolving loan fund which had a client outstanding loan balance totaling $271,748.