Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Bayou Liberty Water Association under programs of the federal government for the year ended November 30, 2025. The information in this Schedule 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). Because the Schedule presents only a selected portion of the operations of Bayou Liberty Water Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bayou Liberty Water Association.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Association’s financial statements for the year ended November 30, 2025. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of the basic financial statements.
The value of federal awards expended under loan programs includes the proceeds of new loans received during the audit period, plus the beginning of the audit period balance of loans from previous years, minus the forgiveness of principal loan. The balance of loans outstanding as of November 30, 2025, is as follows: Assistance Listing Number Program Name Outstanding Balance, net of unamortized debt issuance cost 66.468 Drinking Water State Revolving Loan $930,843 During the year ended November 30, 2025, the loan principal forgiveness income of $920,990 is reported on the Statements of Activities.
The Association has elected to not use the 15% de minimis indirect cost rate as provided for in section 200.413 of the Uniform Guidance.