Notes to SEFA
Title: Basis of Presentation
Accounting Policies: See form
De Minimis Rate Used: N
Rate Explanation: The Cooperative has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
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.
Title: Federal Financial Assistance
Accounting Policies: See form
De Minimis Rate Used: N
Rate Explanation: The Cooperative has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
Pursuant to Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance.
Title: Major Programs
Accounting Policies: See form
De Minimis Rate Used: N
Rate Explanation: The Cooperative has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major programs for the Cooperative are those programs selected for testing by the auditor using a risk assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.
Title: Reporting Entity
Accounting Policies: See form
De Minimis Rate Used: N
Rate Explanation: The Cooperative has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
The reporting entity is fully described in the notes to the financial statements. Additionally, the Schedule includes all federal programs administered by the Cooperative for the year ended June 30, 2023.
Title: Revenue and Expenditure Recognition
Accounting Policies: See form
De Minimis Rate Used: N
Rate Explanation: The Cooperative has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
The receipt and expenditure of federal awards are accounted for under the accrual basis of accounting. Revenues are recorded where measurable and available. Expenditures are recorded when the liability is incurred.