Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: REF NOTE 2
De Minimis Rate Used: N
Rate Explanation: DID NOT USE DE MINIMIS COST RATE
Note 1—Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal award activity of Breathitt County Water District, under programs of the federal government for the year ended June 30, 2023 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 Breathitt County Water District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Breathitt County Water District
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: REF NOTE 2
De Minimis Rate Used: N
Rate Explanation: DID NOT USE DE MINIMIS COST RATE
Note 2—Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported 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 allowed or are limited as to reimbursement. Breathitt County Water District has not elected to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance.
*Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87 Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as to reimbursement.