Notes to SEFA
Title: Massachusetts Clean Water Trust Obligation
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in the Schedule may not fully agree with other federal award reports the Town submits to federal awarding or pass-through entities.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Town had obtained a loan through the Capitalization Grants for Clean Water State Revolving Funds (CFDA #66.458), which were used in conjunction with state matching funds from the Massachusetts Clean Water Trust for the Town’s construction related to water pollution control facility. As of June 30, 2023, the Town had an outstanding loan amount associated with the CWT obligation of $17.1 million.