Notes to SEFA
Title: Virginia Revolving Loan Fund (ALN 66.468)
Accounting Policies: The accompanying schedule of federal expenditures includes the activity of all federally assisted programs of Frederick Water (the "Authority") and is presented on the modified accrual basis of accounting, as described in Note 1 to the Authority’s basic financial statement. All federal awards received directly from federal agencies, as well as federal awards passed
through other government agencies, are included on this schedule.
De Minimis Rate Used: N
Rate Explanation: The entity did not elect to use the 10 percent de minimis indirect cost rate.
During 2021, the Authority received approval for a federally funded loan through the Virginia Revolving Loan fund in the amount of $35,000,000. The amount outstanding as of June 30, 2023 is $33,107,649.
Title: Prior Year Expense Recapture (ALN 66.468)
Accounting Policies: The accompanying schedule of federal expenditures includes the activity of all federally assisted programs of Frederick Water (the "Authority") and is presented on the modified accrual basis of accounting, as described in Note 1 to the Authority’s basic financial statement. All federal awards received directly from federal agencies, as well as federal awards passed
through other government agencies, are included on this schedule.
De Minimis Rate Used: N
Rate Explanation: The entity did not elect to use the 10 percent de minimis indirect cost rate.
At the inception of the related project, management determined that federal funding would be used for plant expenses only, and would later recapture intake related expenses only if all
funding was not used. During fiscal year 2023, it was determined that some intake expenses would need to be claimed. This resulted in $1,884,889 of prior year expenses claimed and reported on the FY23 SEFA.