Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Combined Utilities, Inc. under the programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Combined Utilities, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Combined Utilities, Inc. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Combined Utilities, Inc. obtained a $ 5,307,500 loan from the Mississippi State Department of Health ( the Department) on September 30, 2020. The funding consisted of a loan with principal $5,307,500 and $0 of principal forgiveness or grant funding. The funds were passed through the Department from the Environmental Protection Agency. The funds were for the purpose of constructing improvements to the Companys water system. Through December 31, 2022, the Company had incurred $4,285,604 of construction costs, some of which has not received funding and approval by the Department. As costs are incurred on the project, the Company submits loan draw payment requests on this project and the Department approves and reimburses the Company. An amendment to increase loan proceeds to $6,651,606 was granted by the Department on September 1, 2021. CAPITALIZATION GRANTS FOR DRINKING WATER STATE REVOLVING FUNDS (66.468) - Balances outstanding at the end of the audit period were 3939297.