Notes to SEFA
Accounting Policies: 1. BASIS OF PRESENTATION: The above schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of San Carlos Apache Telecommunications Utility, Inc. (the Corporation) under programs of the federal governments for the year ended September 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 the Corporation, it is not intended to and does not present the balance sheets, statements of income (loss), or cash flows of the Corporation.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The Corporation receives federal loans from the Rural Utilities Service (RUS) of the U.S. Department of Agriculture to purchase and construct facilities necessary to provide the services described above. The federal loans are considered expended when disbursed from the Corporation’s RUS construction fund. Disbursements are made only on items specifically approved by RUS. Grant funds are considered expended when expenditures are made for approved purposes. Grant funds relating to construction are treated as contribution in aid to construction. San Carlos Apache Telecommunications Utility, Inc. has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.