Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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.
De Minimis Rate Used: Y
Rate Explanation: The Town has elected to use the 10% de minimis indirect cost rate as allowed under th Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal award activity of the Town of Sherman, Mississippi 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 Town, it is not intenede dto and does not present the financial position, changes in net assets, or cash flows of the Town.
Title: Loans and Loan Guarantees
Accounting Policies: Expenditures reported on the Schedule are reported on the cash 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.
De Minimis Rate Used: Y
Rate Explanation: The Town has elected to use the 10% de minimis indirect cost rate as allowed under th Uniform Guidance.
During the year ended September 30, 2023, the Town incurred loans in the amount of $1,563,734 from the United States Department of Agriculture (CFDA 10.760). The outstanding balance of these loans as of September 30, 2023 was $1,563,734.