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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has an approved cost allocation plan from the PA Department of Labor and Industry. The Office of Management and Budget (OMB) has revised the Uniform Guidance to increase the de minimis indirect cost rate from 10% to 15%. This change applies to awards executed on or after October 1, 2024. Recipients may elect to use the new 15% de minimis rate for any award executed on or after this date. This did not have an impact for the single audit for the year ending December 31, 2024.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Steel Valley Authority (the “Authority”) and is presented on the accrual basis of accounting. 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 (the “Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Authority, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Authority.
Title: Note 4 – Subrecipients
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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has an approved cost allocation plan from the PA Department of Labor and Industry. The Office of Management and Budget (OMB) has revised the Uniform Guidance to increase the de minimis indirect cost rate from 10% to 15%. This change applies to awards executed on or after October 1, 2024. Recipients may elect to use the new 15% de minimis rate for any award executed on or after this date. This did not have an impact for the single audit for the year ending December 31, 2024.
Of the federal expenditures presented in the schedule, the Authority did not provide federal awards to a sub-recipient.
Title: Note 5 – Budgetary Data
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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has an approved cost allocation plan from the PA Department of Labor and Industry. The Office of Management and Budget (OMB) has revised the Uniform Guidance to increase the de minimis indirect cost rate from 10% to 15%. This change applies to awards executed on or after October 1, 2024. Recipients may elect to use the new 15% de minimis rate for any award executed on or after this date. This did not have an impact for the single audit for the year ending December 31, 2024.
The Authority passed, and had approved by the appropriate agency, budgets for the year ended December 31, 2024.
Title: Note 6 – Contingency
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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has an approved cost allocation plan from the PA Department of Labor and Industry. The Office of Management and Budget (OMB) has revised the Uniform Guidance to increase the de minimis indirect cost rate from 10% to 15%. This change applies to awards executed on or after October 1, 2024. Recipients may elect to use the new 15% de minimis rate for any award executed on or after this date. This did not have an impact for the single audit for the year ending December 31, 2024.
The grant revenue amounts received and expensed are subjected to audit and adjustments. If any expenditures are disallowed by the grantor as a result of such an audit, any claim for reimbursement to the grantor would become a liability of the Authority. In the opinion of management, all grant expenditures are in compliance with the terms of the agreements and applicable federal, state, and local laws and regulations.