Notes to SEFA
Title: NOTE 1-BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the SEFA 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. No indirect costs were charged to the federal awards. Indirect costs were not budgeted in the total project budget. The project was fully outsourced by the auditee.
The accompanying schedule of expenditures of federal awards (the” Schedule”) includes the federal grant activity Of Blossburg Municipal Authority under programs of the federal government for the year ended December 31, 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 Blossburg Municipal Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Blossburg Municipal Authority.
Title: NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the SEFA 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. No indirect costs were charged to the federal awards. Indirect costs were not budgeted in the total project budget. The project was fully outsourced by the auditee.
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.
Title: NOTE 3-INDIRECT COST RATE
Accounting Policies: Expenditures reported on the SEFA 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. No indirect costs were charged to the federal awards. Indirect costs were not budgeted in the total project budget. The project was fully outsourced by the auditee.
The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4-INTERIM FINANCING
Accounting Policies: Expenditures reported on the SEFA 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. No indirect costs were charged to the federal awards. Indirect costs were not budgeted in the total project budget. The project was fully outsourced by the auditee.
The Authority was required to obtain interim financing from a local Financial institution over the course of the construction period until RUS funding began in August 2023. Expenditures from this commercial source was repaid using the proceeds of the United States Department of Agriculture loans and are considered federal awards expended.
Title: NOTE 5- LOAN/ LOAN GUARANTEES
Accounting Policies: Expenditures reported on the SEFA 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. No indirect costs were charged to the federal awards. Indirect costs were not budgeted in the total project budget. The project was fully outsourced by the auditee.
Accrued revenue outstanding at the beginning of the year and loans made during the year are included in the schedule of expenditures of federal awards. The balance of loans outstanding at December 31, 2023 consists of: AL Number Program Name
10.760 Water and Waste Disposal Systems for Rural Communities
Beginning Balance 01/01/2022 $ 0
Add: Loans Received 8,503,000
Ending Balance 12/31/2023 $ 8,503,000