Notes to SEFA
Title: Reporting Entity
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is discribed in Note 1 to the Board's finaical statements.
De Minimis Rate Used: N
Rate Explanation: The Board did not use the 10% de minimus indirect cost rate.
The Board of Public of the City of Lewes, Delaware (the "Board") as the reporting entity for financial reporting purposes os defined in Note 1 to the Board's financial statements. For purposes of preparing the schedule of expenditures of federal awards, the Board's reporting entity is the same that was used for financial reporting.
Title: Risk-Based Audit Approach
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is discribed in Note 1 to the Board's finaical statements.
De Minimis Rate Used: N
Rate Explanation: The Board did not use the 10% de minimus indirect cost rate.
The 2024 threshold for determing Type A and Typle B Programs is $750,000. The following Type A program was audited as major: Capitalization Grants for Drinking Water State Revolving Fund. The amount expended under programs audited as major federal programs for the year ended March 31, 2024, totaled $1,267,279 or 100% of total federal awards.
Title: Loans Outstanding
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is discribed in Note 1 to the Board's finaical statements.
De Minimis Rate Used: N
Rate Explanation: The Board did not use the 10% de minimus indirect cost rate.
Amortization of the loan starts when the full principal of the loan is drawn. The total drawdown on the loan and the loan balance outstanding by the Board as of March 31, 2024, is $1,329,663 and $9,735,335 respectively.