Notes to SEFA
Title: Note 1: Basis of Presentation:
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 limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Mid‐Dakota Rural Water System, Inc. has not elected to use the 10% de minimus indirect cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award
activity of Mid‐Dakota Rural Water System, Inc. under programs of the federal government for the year ended
December 31, 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 Mid‐Dakota Rural Water System, Inc., it is not intended to and does not present the financial
position, changes in net position, or cash flows of Mid‐Dakota Rural Water System, Inc.
Title: Note 2: Summary of Significant Accounting Policies:
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 limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Mid‐Dakota Rural Water System, Inc. has not elected to use the 10% de minimus indirect cost rate.
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 limited as to reimbursement.
Title: Note 3: Federal Reimbursement:
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 limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Mid‐Dakota Rural Water System, Inc. has not elected to use the 10% de minimus indirect cost rate.
Mid‐Dakota Rural Water System, Inc. has not elected to use the 10% de minimus indirect cost rate.