Notes to SEFA
Title: Summary of Significant Accounting Policies
Accounting Policies: General, Basis of Presentation, Cost Rates
De Minimis Rate Used: N
Rate Explanation: The Auditee elected not to use the de minimis cost rate because they did not charge any indirect costs to the program.
General - Pea River Electric Cooperative, Inc. (the "Cooperative") is a private, not-for-profit corporation. Founded in 1938, the Cooperative distributes electric power to residential and commercial users in southeast Alabama. Basis of Presentation - The accompanying Schedule of Expenditures fo Federal Awards (the "Schedule") has been prepared on the cash basis of accounting and 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). The Schedule summarizes the expenditures of the Cooperative for the Coronavirus Capital Projects under the programs of the federal government for the year ended December 31, 2024 awards. The Schedule presents the completed and in process installations as of the period from January 1, 2024 to December 31, 2024, and is not intended to and does not present the financial position, changes in net assets or cash flows of the Cooperative in accordance with accounting princples generally accepted in the United States of America. The Cooperative receives funding for reimbursement from the Department of the Treasury passed through the Alabama Deparment of Economic and Community Affairs (ADECA). Cost Rates - The Cooperative has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Provisions Granted to Borrowers of Rural Utilities Service
Accounting Policies: General, Basis of Presentation, Cost Rates
De Minimis Rate Used: N
Rate Explanation: The Auditee elected not to use the de minimis cost rate because they did not charge any indirect costs to the program.
The Cooperative obtained financing from Rural Utilities Service (RUS) in prior periods and is considered a RUS borrower as of December 31, 2024. RUS borrowers are exempt from Subpart F of Title 2 U.S. Code of Federal Regulations Part 200, unless Subpart F is imposed upon them by the grantor agency. For the year ended December 31, 2024, management determined that the Cooperative's federal awards were under no such imposition except for federal awards from Coronavirus Capital Projects.