Notes to SEFA
The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state award activity of the System under programs of the federal and state governments for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 US 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 the System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System. 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. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
At June 30, 2025, there was an outstanding balance of $10,499,978 on loans obtained in previous years through the US Department of Agriculture (USDA) Rural Utilities Service (RUS). Principal payments during the current year totaled $269,029. At June 30, 2025, there were outstanding balances totaling $13,857,577 on loans obtained through the Tennessee Department of Environment and Conservation State Revolving Fund Loan Program in previous years. A portion of this financing is funded through the EPA. Payments during the current year totaled $1,092,917.
Fayetteville Public Utilities has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The 2025 OMB Compliance Supplement made available by the federal government for compliance testing required under the Uniform Guidance has not yet been finalized. Differences between the draft and final versions may require reissuance of the Annual Financial Report.