Notes to SEFA
The accompanying schedule of expenditures of federal awards (The Schedule) includes the federal awards activity of the Board under programs of the federal government for the year ended June 30, 2024. 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 the Audit Requirement for Federal Awards (Uniform Guidance). All federal financial awards received directly from federal agencies as well as federal financial awards passed through from other governmental agencies are included in the Schedule. Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Board.
Expenditures reported on the Schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the Board's basic financial statements. 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.
The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
There were no awards to subrecipients.
The Tongue River Valley Joint Powers Board has a current Workout Agreement with the USDA Rural Housing Service Community Programs. OMB No. 0575-0066 was signed March 27, 2024 between the two entities due to the default of the USDA loans. The agreement has provisions to review monthly financial information and will work with State Land Investment Boards to come up with a plan. The USDA has a right to declare the whole balances of these loans immediately due and payable. The Tongue River Valley Joint Powers Board is required to submit monthly financial information for all transactions, as long as this requirement is met, the USDA is not exercising its right of full assignment of the loan amounts. The mutual agreement is in the best interests of both parties to review different avenues, and a future plan of action will be determined.