Notes to SEFA
Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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 Cooperative has elected not to use 10% de minimis cost rate allowed under Uniform Guidance.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Dixie Electric Membership Corporation (the Cooperative) and is presented on the accrual basis of accounting. 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 SEFA presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Cooperative.
Title: NOTE D – AMOUNTS INCLUDED IN THE SEFA
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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 Cooperative has elected not to use 10% de minimis cost rate allowed under Uniform Guidance.
The Cooperative includes Expenditures of Federal Awards from Category Z costs (Management Costs). Eligible costs up to 5% of total expenditures are able to be claimed and cover costs of management of projects such as consulting and auditing services. The Cooperative included obligated funds for Category Z costs in the SEFA totaling $385,587. For the year ended December 31, 2023, the Cooperative paid $576,609 to their Federal Emergency Management Agency (FEMA) consultant.