Notes to SEFA
Title: BASIS OF PRESENTATION
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has elected not to use the 10% de minimis indirect costs rate allowed under the Uniform Guidance. The Association uses a provisional indirect cost rate method throughout the period pending the establishment of a final rate after actual indirect and direct costs are determined. The indirect cost rates charged to federal awards in fiscal year 2024 ranged from 3.57% to 6.65% of direct costs.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the National Rural Water Association, Inc. (the “Association”) under programs of the federal government for the year ended February 29, 2024. The information in the Schedule is presented in accordance with the requirement 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements the Association entered into directly between the U.S. Environment Protection Agency, the U.S. Department of Agriculture, and U.S. Department of Labor, and all sub-awards.
The Association is awarded a revolving loan fund grant from the U.S. Department of Agriculture’s Rural Utilities Service to assist small wastewater systems in water and wastewater improvement projects and with funding predevelopment costs. Under the grant, the Association is required to match 20% of the loan funding. The Association requests and receives reimbursement under the grant when the applicable eligible loans have been funded by the Association. The Association does not charge any expenditures to this program. During fiscal year 2024, the Association requested and received $1,189,374 from this grant.
Title: SUBSEQUENT EVENTS
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Association has elected not to use the 10% de minimis indirect costs rate allowed under the Uniform Guidance. The Association uses a provisional indirect cost rate method throughout the period pending the establishment of a final rate after actual indirect and direct costs are determined. The indirect cost rates charged to federal awards in fiscal year 2024 ranged from 3.57% to 6.65% of direct costs.
The Association has evaluated the effects of all subsequent events from March 1, 2024, through July 23, 2024, the date the Schedule was available to be issued, for potential recognition or disclosure in this Schedule. The Association is not aware of any subsequent events which would require recognition or disclosure in the Schedule.