Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Cooperative does not draw for indirect administrative expenses and has not elected to use the 10% de
minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity
of Burke-Divide Electric Cooperative, Inc. (“the Cooperative”) under programs of the federal government for the
year ended December 31, 2024. The information 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 the Cooperative, it is not intended to and does not present the balance sheets, statements of
operations, changes in equities and cash flows of the Cooperative.
Title: Note 4 - Disaster Grants – Public Assistance
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Cooperative does not draw for indirect administrative expenses and has not elected to use the 10% de
minimis cost rate.
Per the OMB Compliance supplement, nonfederal entities must record expenditures on the schedule of
expenditures of federal awards when FEMA has approved the entity’s project. These expenditures were incurred
in fiscal year 2022 but approved for payment by the federal agency in 2024 and therefore are included in the
schedule when approved.