Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity
of Jefferson Davis Electric Cooperative, Inc. (the Cooperative) 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 (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the financial position,changes in net assets, or cash flows of the Cooperative.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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 C – INDIRECT COST RATE
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
The Cooperative has elected not to use either the 15% or the 10% de minimis cost rate allowed under
Uniform Guidance.
Title: NOTE D – AMOUNTS INCLUDED IN THE SEFA
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
The Cooperative includes Expenditures of Federal Awards from Category Z costs (Management Costs).
Eligible costs up to 5% of total expenditures are able to be claimed and cover costs of management of
projects such as consulting and auditing services. The Cooperative included obligated funds for Category
Z costs in the SEFA totaling $5,205,843. For the year ended December 31, 2024, the Cooperative paid
$11,132,921 to their Federal Emergency Management Agency (FEMA) consultant.
Title: NOTE E –TOTAL FEMA FUNDS RECEIVED
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
The Cooperative received a total of $229,969,287 for Hurricane Laura from FEMA during the year ended
December 31, 2024.
Title: NOTE F–CREDIT RISK
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting or when the funds
are obligated by the awarding entity. 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: Program allows for Category Z cost up to 5% of total submission.
As of December 31,2024, the Cooperative had cash received from FEMA deposited in a checking account located at a local financial institution totaling $10,541,696. The Cooperative is advanced funds from FEMA that are used to build transmission line as part of the Cooperative’s FEMA claim. The account is interest bearing and is insured up to $250,000 by the Federal Deposit Insurance Corporation.