Notes to SEFA
Title: Note 3 – Federal Loans
Accounting Policies: Note 1 – Basis of Accounting
This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Note 2 – Federal Indirect Cost Rate
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 Utilities Service to receive a loan totaling $3,497,000.00 for phase two water system improvements. The amount listed for this loan includes the proceeds used during the year as well as proceeds used in a previous year. Interim loan financing was received for the construction period. The remaining funds in 2022, totaling $1,431,184.00 were dispersed by working directly with USDA. Proceeds used in 2022 include $3,465,000 of Cashmere Bank Interim Funding Interest that was paid directly to Cashmere Bank from USDA by EFT, when the interim financing was paid off and the bond was issued in December 2023. The amount listed for this loan includes the proceeds used during the year.
Both the current and prior year loans are reported on the city’s Schedule of Liabilities.
Title: Note 4 – Program Costs
Accounting Policies: Note 1 – Basis of Accounting
This Schedule is prepared on the same basis of accounting as the city’s financial statements. The city uses the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Note 2 – Federal Indirect Cost Rate
The city has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the city’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.