Notes to SEFA
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.
ACHA has seven notes payable to Rural Development at interest rates ranging from 1% to 3.125%. The notes payable are part of a federal loan program. The outstanding balances on the loans are included in the federal expenditures presented in the schedule. The balance of loans outstanding as of December 31, 2024, consists of: Interest subsidies totaling $30,061 were received relating to the loans during 2024. The effect of the interest subsidies is to reduce the effective interest rate on the notes payable to approximately 1% over the life of the loan agreements.