Notes to SEFA
Title: Basis of presentation
Accounting Policies: Modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The District negotiates an indirect cost rate plan.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of South CentralTennessee Development District and is presented on the accrual basis of accounting.
Title: Summary of Significant Accounting Policies and Indirect Cost Rate
Accounting Policies: Modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The District negotiates an indirect cost rate plan.
Expenditures reported on the Schedule are reported on the modified 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. The District annually negotiates an indirect cost rate plan. The District elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Revolving Loan Fund (Economic Adjustment Assistance Program)
Accounting Policies: Modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The District negotiates an indirect cost rate plan.
Expenditure calculation for this program was as follows: (Cash ($178,883) + Outstanding loan balances ($1,515,149) + Adminstrative costs ($33,128)) multiplied by federal share (100%) equals $1,727,160.