Notes to SEFA
The expenditures of the Town are presented on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The cash basis of accounting, therefore, does not recognize receivables and payables, inventories, long-lived assets, and accrued income and expenses, which would be recognized under accounting principles generally accepted in the United States of America. The 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. According to Uniform Guidance (2 CFR §200.502(a)), loans are generally considered expended and should be reported on the SEFA when the proceeds are used for their designated purpose under the loan or loan guarantee program.
The Town obtained from the U.S. Department of Agriculture a guaranteed loan. The outstanding balance of the direct loan at December 31, 2024 was $2,633,741.