Title: NOTE 2 - RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Blue Water Community Action (the “Agency”) for the year ended September 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting as the financial statements, the accrual basis, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the Schedule are recognized following the cost principles contained in 2 CFR Part 200, Subpart E, Cost Principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented on the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
The Agency has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
Revenue has been accrued at September 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as refundable advances on the statement of financial position.
Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.
De Minimis Rate Used: N
Rate Explanation: The entity did not use the de minimus cost rate. The entity follows their internal cost allocation policy for allocating administrative costs based on the number of transactions.
Grants and awards per basic finanical statements $2,676,551
Less-
State grants (317,912)
Local grants (689,349)
Expenditures per federal awards $1,669,290
Title: NOTE 3 - LOANS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Blue Water Community Action (the “Agency”) for the year ended September 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting as the financial statements, the accrual basis, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the Schedule are recognized following the cost principles contained in 2 CFR Part 200, Subpart E, Cost Principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented on the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
The Agency has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
Revenue has been accrued at September 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as refundable advances on the statement of financial position.
Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.
De Minimis Rate Used: N
Rate Explanation: The entity did not use the de minimus cost rate. The entity follows their internal cost allocation policy for allocating administrative costs based on the number of transactions.
Funding has been provided for the purchase and renovations of the Agency’s operating facility by the United States Department of Agriculture Rural Development. Information for the project at and for the year ended September 30, 2024 is as follows:
Authorized $1,500,000 Loan balance at September 30, 2024 $1,284.174
2024 activity:
Proceeds $-
Expenditure - building improvements -