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: N/A
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance includes the federal and state award activity of Fayetteville Public Utilities under programs of the federal and state government for the year ended June 30, 2024. 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 Fayetteville Public Utilities, it is not intended to and does not present the financial position, changes in net position, or cash flows of Fayetteville Public Utilities.
Title: DEBT OUTSTANDING
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: N/A
At June 30, 2024, there was an outstanding balance of $10,769,007 on loans obtained in previous years through the U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS). Payments during the current year totaled $262,012. In the current year, the System entered into three loan agreements through the Tennessee Department of Environment and Conservation State Revolving Fund Loan Program for $8,790,000 to finance the cost of certain improvements to the water and wastewater system. A portion of this financing is funded through the Environmental Protection Agency (EPA). At June 30, 2024, the System had received no advances on these loans. At June 30, 2024, there were outstanding balances totaling $13,754,473 on loans obtained through the Tennessee Department of Environment and Conservation State Revolving Fund Loan Program in previous years. A portion of this financing is funded through the Environmental Protection Agency (EPA). Payments during the current year totaled $1,004,117.
Title: GRANT PROGRAMS
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: N/A
During 2023, the System was awarded a Broadband Accessibility Grant through the Tennessee Department of Economic and Community Development in the amount of $8,899,590 after a grantee match of $3,814,110 for the purpose of expanding broadband infrastructure in certain portions of Lincoln County. As of June 30, 2024, the System has recorded $7,976,595 of revenue earned from work performed related to this grant. This grant was funded through the American Rescue Plan (ARP) and the end date is August 31, 2025. Additionally, the System was awarded a Wastewater Infrastructure Grant through the Tennessee Department of Environment and Conservation in the amount of $1,470,192 after a grantee match of $180,308 for the purpose of improving the System’s wastewater facilities. As of June 30, 2024, the system has incurred $51,126 of reimbursable expenses related to this grant. This grant was funded through the American Rescue Plan (ARP) and the end date is September 30, 2026. During 2024, the System was awarded a Broadband Middle Mile Program Grant through the Tennessee Department of Economic and Community Development in the amount of $2,646,000 after a grantee match of $1,134,000 for the purpose of expanding broadband infrastructure in certain portions of Lincoln, Giles, and Marshall counties. As of June 30, 2024, work has not begun on this project and no revenues or expenditures have been recorded related to this grant. This grant was funded through the ARP and the end date is October 31, 2026.
Title: COMMITMENTS
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: N/A
At June 30, 2024, the System had outstanding commitments totaling $1,611,250 for engineering services and various plant upgrade contracts.