Notes to SEFA
Title: 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. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10 percent, de minimis, indirect-cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the Federal-award activity of the Town under programs of the Federal government for the year ended December 31, 2023. 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 Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town.
Title: Loan Balance Involving Federal Funds
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. Revenue is recognized when earned, and expenses are recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Town has not elected to use the 10 percent, de minimis, indirect-cost rate allowed under the Uniform Guidance.
As required by the U.S. Department of Agriculture (USDA), $1,444,000 of General Obligation Bonds, Series of 2023 was issued as a private placement, with the bond being held by the United States of America, acting through the USDA Rural Housing Service, with a local financial institution acting as the paying agent. The debt proceeds were used for project costs. Such expenditures incurred during the year ended December 31, 2023, are considered federal awards expended and reported on the Schedule, as required by the USDA. The Town has a loan balance outstanding of $1,408,867 at December 31, 2023, for the Community Facilities Direct Loan Program, Federal ALN 10.766.