Notes to SEFA
Title: LOANS
Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The Town did not have any subrecipients. The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: n/a
For purposes of the schedule of expenditures of Federal awards, the value of Federal expenditures in the form of loans is calculated as the sum of the balance of loans from previous years for which the Federal Government imposes continuing compliance requirements plus the value of new loans received during the fiscal year. The Town has been awarded a loan of $1,149,000 from the U.S. Department of Agriculture (USDA) for the upgrade of the wastewater treatment plant. Interim financing was provided by Summit Community Bank for the construction period, as required by USDA. Draws of $1,055,085 were made during the year. In September 2023, $1,143,221 was paid off with the USDA loan. As of June 30, 2024, the outstanding balance on the Summit Community Bank loan was $829. As of June 30, 2024, the outstanding balance on the USDA loan was $1,135,130.