Notes to SEFA
Title: Note 1 - General
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basis financial statements of the Municipality of Carolina.
De Minimis Rate Used: N
Rate Explanation: The de minimis cost rate is the percentage of Modified Direct Cost that can be used by non-governmental entities who do not have a negotiated Indirect Cost . Since the Municipality is a Local Government entity, it is not a non-governmental entity and therefore the use of the de minimis cost rate is not applicable to the Municipality.
The accompanying Schedule of Expenditures of Dederal Awars presents the expenditures of the Municipality of Carolina for the fiscal year ended June 30, 2024.
Title: Note 2 - Accounting Basis
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basis financial statements of the Municipality of Carolina.
De Minimis Rate Used: N
Rate Explanation: The de minimis cost rate is the percentage of Modified Direct Cost that can be used by non-governmental entities who do not have a negotiated Indirect Cost . Since the Municipality is a Local Government entity, it is not a non-governmental entity and therefore the use of the de minimis cost rate is not applicable to the Municipality.
Except for the Section 8 Housing Choice Voucher Program, the SEFA is prepared following the modified accrual basis of accounting. For more information, refer to Note regarding accounting policies of the basis financial statements and note 1 to the SEFA and accompanying reconciliation.
Title: Note 3 - Federal Notes Payable (Section 1108 Loan guarantees)
Accounting Policies: Except for the Section 8 Housing Choice Voucher Program, the SEFA was prepared following the modified accrual basis of accounting, which is further explained in Note 1 of the basis financial statements of the Municipality of Carolina.
De Minimis Rate Used: N
Rate Explanation: The de minimis cost rate is the percentage of Modified Direct Cost that can be used by non-governmental entities who do not have a negotiated Indirect Cost . Since the Municipality is a Local Government entity, it is not a non-governmental entity and therefore the use of the de minimis cost rate is not applicable to the Municipality.
Note reports the data of the outstanding federal notes payable at June 30, 2024. Refer to Note 11 to the basis financial statements (specifically General Long term debt) and Note 3 to the SEFA.