Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures 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 allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the de minimis cost rate.
The schedule of expenditures of federal awards includes the federal award activity of the Town of Marion under programs of the
federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the
requirements of Title 2 US Code of Federal Regulations Part 200 Uniform Administrative Requirement, Cost Principle and Audit
Requirement for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the
Town, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Town.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures 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 allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the de minimis cost rate.
Expenditures 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 allowed or are limited as to
reimbursement. Grant identifying numbers as awarded or as assigned by pass-through entities are presented where available.
Title: Subrecipients
Accounting Policies: Expenditures 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 allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the de minimis cost rate.
The Town did not have any subrecipients for the year ended June 30, 2024.
Title: Loan Balances
Accounting Policies: Expenditures 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 allowed or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not elect to use the de minimis cost rate.
USDA Community Facilities Loan of $114,300
Issued January 23, 2024. Expended during the year ended June 30, 2024 by the General Fund on the modified accrual basis of
accounting. Therefore, the schedule of expenditures of federal awards reported expenditures of $114,300 for the year ended
June 30, 2024. Loan payments are reported as debt service expense. On the accrual basis of accounting, loan balances are
reported on the government-wide statements as long-term liability.
At June 30, 2024 the outstanding balance was $105,387.
USDA Community Facilities Loan of $1,018,000
Awarded in September 2022. Has not been expended or issued as of June 30, 2024.
USDA Rural Development Loan of $606,000
Issued July 14, 2011. Reported by the Proprietary Water/Sewer Fund on the accrual basis of accounting as long-term liability.
At June 30, 2024 the outstanding balance was $475,589.