Notes to SEFA
The accompanying schedules of expenditures of federal awards and State of North Carolina awards (“Schedules”) include the federal government and the State of North Carolina activity of TFA for the year ended May 31, 2025 and is presented on the accrual basis of accounting. The information in these Schedules are 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) and the State Single Audit Act Implementation Act, respectively. Because the Schedules present only a selected portion of the operations of TFA, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of TFA. Expenditures reported on the Schedules 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. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. TFA has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.