Notes to SEFA
Expenditures reported in 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.
Of the 2025 federal expenditures presented in the schedule, the Gogebic-Iron Wastewater Authority provided no federal awards to subrecipients.
The major federal assistance program is listed in the Schedule of Findings and Questioned Costs. Gogebic-Iron Wastewater Authority does not qualify as a low-risk auditee in accordance with the Uniform Guidance. Major programs, which must exceed 40% of the total federal awards expended, were selected using a risk-based approach based on auditors’ risk assessments. There were no other federal programs
Expenditures in this schedule are in agreement with the amounts reported in the financial statements.