Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Long Tom Watershed Council’s under programs of the federal government for the year ended June 30, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 activities of Long Tom Watershed Council, it is not intended to and does not present net assets, changes in net assets, nor total revenues and expenses of the Council.
A. Basis of Presentation Expenditures reported on the schedule are reported on the modified cash 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. Long Tom Watershed Council has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. B. Federal Financial Assistance Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, non-monetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. C. Major Programs The Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major programs of the Council are those programs selected for testing by the auditor using a risk assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. D. Reporting Entity The reporting entity is fully described in the notes to the Council’s basic financial statements. Additionally, the Schedule includes all federal programs administered by the Council for the year ended June 30, 2025. E. Revenue and Expenditure Recognition The receipt and expenditure of federal awards are accounted for under the modified cash basis of accounting.