Notes to SEFA
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal activity of the Utility and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the State of Tennessee, Department of Audit, Audit Manual. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
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 to reimbursement. The Utility has elected not to use the fifteen percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Utility had $4,236,272 of outstanding loan balances related to the federal program of Water and Waste Disposal Systems for Rural Communities.