Notes to SEFA
Title: Note 3 – Federal Loans
Accounting Policies: Note 1 – This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis accounting.
De Minimis Rate Used: N
Rate Explanation: Note 2 – The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The city was approved by the USDA Rural Development Program to receive a loan totaling $2,059,500 to build a bolted-steel water reservoir. Interim loan financing was received for the construction period. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year. The balance owing at the end of the period is $1,133,948.