Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the Power Authority of the State of New York (“New York State Power Authority (NYPA)”) under programs of the federal government for the year ended December 31, 2022. The schedule is presented using the accrual basis of accounting. The information in this SEFA 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 SEFA presents only a selected portion of the operations of NYPA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NYPA. After a presidentially declared disaster, the U.S. Federal Emergency Management Agency (“FEMA”) provides a public assistance grant to reimburse eligible costs associated with repair, replacement, or restoration of disaster-damaged facilities. The Federal Government reimburses in the form of cost-shared grants.
Expenditures reported on the SEFA are reported once the expenditures are incurred and the obligation of funds from FEMA and the New York State Division of Homeland Security and Emergency Services (“DHSES”). 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. NYPA has not elected to use the ten-percent de minimis indirect cost rate allowed by the Uniform Guidance. NYPA did not pass-through any federal awards to subrecipients during the year ended December 31, 2022.
As a result of two separate weather events that were presidentially declared disasters, NYPA has been awarded public assistance grants. The amounts reported on the SEFA for the year ended December 31, 2022 relate to the costs incurred in connection with the following disasters: DR 4020-Hurricane Irene and DR-4472-Halloween Storms. Under FEMA regulations and the Uniform Guidance Compliance Supplement, expenditures for this program are recognized on the SEFA only when FEMA has approved the project and the eligible expenditures have been incurred. During the year ended December 31, 2022, FEMA approved $2.3 million for eligible expenditures incurred in prior years. These prior years expenditures are included in the current year’s SEFA. Additionally, these awards are subject to cost-sharing requirements. The expenditures on the SEFA include only the federally funded portion of the projects, with the matching portion excluded.