The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Surry-Yadkin Electric Membership Corporation (the Corporation) for the year ended December 31, 2025. The information in the 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 the Corporation, it is not intended to and does not present the financial position, changes in equities or cash flows of the Corporation.
The President declared a major disaster for the State of North Carolina (FEMA-DR-4827-NC) on September 28, 2024, as a result of Tropical Storm Helene, pursuant to his authority under the Stafford Act. This declaration authorized the Federal Emergency Management Agency to provide, through its Public Assistance Program, reimbursement or direct Federal assistance to eligible state, local, tribal, and certain private-non-profit organization applicants for emergency work Categories A and B, and the repair or replacement of disaster-damaged facilities under Public Assistance Categories C, D, E, F, and G including Direct Federal Assistance for Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Cabarrus, Caldwell, Catawba, Cherokee, Clay, Cleveland, Forsyth, Gaston, Graham, Haywood, Henderson, Iredell, Jackson, Lee, Lincoln, Macon, Madison, McDowell, Mecklenburg, Mitchell, Nash, Polk, Rowan, Stanly, Surry, Swain, Transylvania, Union, Watauga, Wilkes, Yadkin, and Yancey Counties in the State of North Carolina. The Department of Energy’s Grid Resilience and Innovation Partnerships (GRIP) Program, administered by the Grid Deployment Office, provides competitive federal funding under the Infrastructure Investment and Jobs Act to modernize and strengthen the electric grid, with Smart Grid Grants specifically targeted at improving grid flexibility, efficiency, and reliability through advanced technologies such as automation, sensors, advanced metering, communications, and grid management systems. Smart grid awards support projects that enhance outage detection and restoration, enable integration of distributed energy resources, and improve system visibility and control, particularly for utilities serving rural and underserved communities. Funding is generally awarded on a cost-shared, reimbursable basis, subject to compliance with federal grant requirements and allowable cost provisions, and is intended to accelerate deployment of scalable, transformative grid technologies that reduce outage impacts and improve long-term system resilience.
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 for reimbursement. The expenditures reported on the schedule of expenditures of federal awards related to Tropical Storm Helene were incurred by the Corporation in the previous accounting period, the year ended December 31, 2024. The grant funds were awarded and received during the year ended December 31, 2025. The expenditures reported on the schedule of expenditures of federal awards related to GRIP Program were incurred by the Corporation in the current accounting period.
The Corporation has elected not to use the fifteen percent de minimis indirect cost rate allowed under the Uniform Guidance.