Notes to SEFA
The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and state grant activity of Polk County under the programs of the federal government and the State of North Carolina for the year ended June 30, 2025. The information in this SEFSA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 , Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of Polk County, it is not intended to and does not present the financial position, changes in net position or cash flows of Polk County.
Expenditures reported in the SEFSA are reported on the modified 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.
Polk County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The following are clustered by the NC Department of Health and Human Services and are treated separately for state audit requirement purposes: Subsidized Child Care Program Cluster Foster Care, Adoption, and Guardianship Assistance Program Cluster Special Children Adoption Fund Cluster Refugee and Entrant Assistance Cluster
The State Cashflow Loans - both Round 1 and Round 2 - are subject to the reporting requirements of Loans and Loan Guarantees found in sections of the Uniform Guidance (UG) §200.502(b) and §200.510(b) adopted by the State Single Audit Implementation Act. The basis for determining expenditures in the value of the loan, which is the loan proceeds received during the fiscal year, plus the beginning balance of the loan from the previous fiscal year (UG §200.502(b)). In the initial year of the loan, only the value of the loan, which equals the loan proceeds, is to be reported on the Schedule of Expenditures of Federal and State Awards (SEFSA) as State Funding, This is the amount an auditor should use to determine a major program. In subsequent years, if disaster response activities and expenditures are continuing to be incurred, the beginning loan balance from prior year plus any new State Cashflow Loans received should be reported on the SEFSA. If there are no activities or expenditures from Hurricane Helene disaster response activities in subsequent years, then the State Cashflow Loan Program should bot be reported on the SEFSA. It is no longer subject to State's Single Audit requirements since all that is required in the payment of principal and interest.